AXIS Capital and Enstar complete a $3.1 billion loss portfolio transfer transaction for reinsurance reserves.
Quiver AI Summary
AXIS Capital Holdings Limited and Enstar Group Limited announced the completion of a loss portfolio transfer (LPT) transaction involving reinsurance segment reserves primarily related to casualty portfolios from 2021 and earlier. The agreement, which totals $3.1 billion in reserves as of September 30, 2024, features a 75% ground-up quota share, with AXIS retroceding $2.3 billion to Enstar. The transaction was facilitated by Enstar's subsidiary, Cavello Bay Reinsurance Limited, which holds strong financial ratings. The deal was finalized after obtaining necessary regulatory approvals and meeting specific closing conditions. AXIS Capital is a global specialty insurer with strong financial strength ratings, while Enstar specializes in innovative capital release solutions and has a significant history of legacy acquisitions.
Potential Positives
- AXIS Capital successfully completed a significant loss portfolio transfer transaction, improving its balance sheet by retroceding $2.3 billion of reinsurance segment reserves.
- The reinsurance agreement's backing by Enstar's subsidiary, Cavello Bay Reinsurance Limited, which has strong financial ratings from S&P and AM Best, enhances AXIS Capital's financial stability.
- This strategic move allows AXIS to streamline its reserves and potentially free up capital for future underwriting and growth opportunities.
Potential Negatives
- Completing a loss portfolio transfer suggests that AXIS Capital may be de-risking its balance sheet due to potential concerns about the profitability or stability of its prior underwriting years, particularly in casualty portfolios.
- The transfer of $2.3 billion in reinsurance segment reserves may indicate a significant exposure to previous underwriting losses, reflecting potential deficiencies in risk management or underwriting practices.
- The need to utilize a third-party insurer, Enstar, for such a substantial transfer could raise questions about AXIS Capital's ability to handle its own reserves effectively and may impact investor confidence.
FAQ
What is the recent transaction between AXIS Capital and Enstar?
AXIS Capital and Enstar completed a loss portfolio transfer (LPT) transaction covering $3.1 billion in reinsurance segment reserves.
What are the financial strengths of AXIS Capital and Enstar?
AXIS Capital has an "A+" rating from S&P and "A" from A.M. Best. Enstar also holds strong financial ratings through its subsidiaries.
How much of the reserves did AXIS retrocede to Enstar?
AXIS retroceded $2.3 billion of reinsurance segment reserves to Enstar as part of the LPT agreement.
Where does AXIS Capital operate?
AXIS Capital operates in Bermuda, the United States, Europe, Singapore, and Canada.
When was this transaction completed?
The loss portfolio transfer transaction was completed on April 24, 2025, after receiving regulatory approvals.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$ESGR Insider Trading Activity
$ESGR insiders have traded $ESGR stock on the open market 5 times in the past 6 months. Of those trades, 0 have been purchases and 5 have been sales.
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- HANS-PETER GERHARDT has made 0 purchases and 2 sales selling 14,934 shares for an estimated $4,958,137.
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$ESGR Hedge Fund Activity
We have seen 136 institutional investors add shares of $ESGR stock to their portfolio, and 97 decrease their positions in their most recent quarter.
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- WELLINGTON MANAGEMENT GROUP LLP removed 300,308 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $96,714,191
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Full Release
PEMBROKE, Bermuda, April 24, 2025 (GLOBE NEWSWIRE) -- AXIS Capital Holdings Limited (“AXIS Capital” or “AXIS” or the “Company”) (NYSE: AXS) and Enstar Group Limited (“Enstar”) (Nasdaq: ESGR) announced today that they have completed a loss portfolio transfer (“LPT”) transaction, covering reinsurance segment reserves predominantly attributable to casualty portfolios related to 2021 and prior underwriting years.
The LPT reinsurance agreement covers reinsurance segment reserves totalling $3.1 billion at September 30, 2024, and is structured as a 75% ground-up quota share, with AXIS retroceding $2.3 billion of reinsurance segment reserves to Enstar.
The LPT reinsurance agreement was provided by Enstar’s wholly owned subsidiary, Cavello Bay Reinsurance Limited, which has S&P and AM Best 'A' financial strength ratings.
Completion of the transaction followed receipt of regulatory approvals and satisfaction of various other closing conditions.
About AXIS Capital
AXIS Capital, through its operating subsidiaries, is a global specialty underwriter and provider of insurance and reinsurance solutions. The Company has shareholders' equity of $6.1 billion at September 30, 2024, and locations in Bermuda, the United States, Europe, Singapore, and Canada. Its operating subsidiaries have been assigned a financial strength rating of "A+" ("Strong") by Standard & Poor's and "A" ("Excellent") by A.M. Best. For more information about AXIS Capital, visit our website at
www.axiscapital.com
.
About Enstar
Enstar is a NASDAQ-listed global insurance group that offers innovative capital release solutions through its network of group companies in Bermuda, the United States, the United Kingdom, Australia, Lichtenstein and Belgium. A market leader in completing legacy acquisitions, Enstar has acquired more than 120 companies and portfolios since its formation in 2001. For further information about Enstar, see www.enstargroup.com.
| AXIS Contacts: | Enstar Contacts: |
| For Investors: | For Investors: |
| Cliff Gallant | Matthew Kirk |
| +1 (415) 262-6843 | +1 (201) 743-7734 |
| [email protected] | [email protected] |
| For Media: | For Media: |
| Nichola Liboro | Jenna Kerr |
| +1 (917) 705-4579 | +44 (0) 771-4487-187 |
|
[email protected]
|
[email protected] |
