Enstar has struck an agreement with Axis to reinsure-to-close (RITC) the 2015 and prior underwriting years of account of Novae Syndicate 2007.
Enstar will assume net reinsurance reserves of roughly £600mn ($811mn) relating to the portfolio and gross reserves of around £840mn (US$1.136bn).
The RITC deal will be executed via Enstar’s Shelbourne Syndicate 2008 and covers the net reserve for losses and loss expenses associated with all business underwritten by Novae in the 2015 and prior years. The transaction was effective as of 1 January.
In a statement, Axis said the transaction resulted in a positive financial impact, which has been reflected in the fair values of Novae's assets acquired and liabilities assumed on the 2 October completion date of its acquisition of Novae.
Axis president and CEO Albert Benchimol said: "This transaction provides Axis Capital with finality on legacy Novae business underwritten in 2015 and prior years and positions the company to focus on advancing leadership positions in our targeted specialty risk markets.”
Meanwhile, Enstar CEO Dominic Silvester commented: “As one of several reinsurance-to-close transactions undertaken by Enstar recently - one of the largest transactions of its type in recent years - the Novae deal underlines Enstar’s capability as a leading reinsurance-to-close provider. By working closely with the Novae and AXIS teams, we were able to complete this significant transaction, highlighting our ability to efficiently enable our partners to restructure their liabilities, improve their capital position and strengthen their businesses.”
Last December, Enstar entered into an agreement to assume the liabilities of the 2015 underwriting year of Neon’s Syndicate 2468, comprising underwriting years 2008 to 2015, via an RITC transaction.