AXIS Capital Holdings Limited and Enstar Group Limited announced a loss portfolio transfer (LPT) reinsurance agreement covering a portfolio of reinsurance segment business.
Under the agreement, AXIS will retrocede $2.3 billion of reinsurance segment reserves to Enstar, predominantly related to casualty portfolios from 2021 and prior underwriting years, totaling $3.1 billion at September 30, 2024.
AXIS expects to recognize an approximate $60 million benefit from the excess of reserves ceded over the consideration over the next several years. The transaction, subject to regulatory approvals, is expected to close in the first half of 2025, aligning AXIS's balance sheet with its specialty insurance strategy.
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