The previously announced $75 million adverse development cover (ADC) reinsurance agreement between a wholly owned subsidiary of legacy player Enstar Group and certain subsidiaries of Bermuda-domiciled insurance holding company, James River Group Holdings, has been completed following receipt of the relevant regulatory approval and satisfaction of the other closing conditions.
Enstar’s subsidiary, Cavello Bay Reinsurance Limited will handle both transactions.
As previously reported, under the terms of the ADC agreement, Enstar’s subsidiary has provided $75 million of limit in excess of the existing $160 million ADC reinsurance coverage provided to such subsidiaries of James River by State National Insurance Company, Inc. earlier this year.
The deal further protects against future adverse reserve development for certain US casualty exposures within James River’s Excess & Surplus Lines segment for accident years 2010 to 2023.
Enstar’s subsidiary will also close the previously announced additional $12.5 million investment in James River common stock.
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