AXIS Capital Holdings Limited (“AXIS Capital” or “AXIS” or “the
Company”) (NYSE: AXS) and Enstar Group Limited (“Enstar”) (Nasdaq:
ESGR) today announced that they have entered into a loss portfolio
transfer (“LPT”) reinsurance agreement covering a portfolio of
reinsurance segment business. The closing of the transaction is
subject to regulatory approvals and other customary conditions, and
is expected to occur during the first half of 2025.
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Under the LPT reinsurance agreement, which is structured as a
75% ground-up quota share, AXIS will retrocede to Enstar $2.3
billion of reinsurance segment reserves. This transaction is
predominantly attributable to casualty portfolios related to 2021
and prior underwriting years totaling $3.1 billion at September
30th. AXIS expects to recognize an approximate $60 million benefit
from the excess of reserves ceded over the consideration over the
next several years, according to the payment patterns of these
reserves. AXIS will maintain claims control for the covered
reserves subject to certain administrative rights of Enstar.
The LPT reinsurance agreement will be provided by Enstar’s
wholly owned subsidiary and S&P 'A' financial strength rated
reinsurance platform, Cavello Bay Reinsurance Limited.
“This transaction aligns our balance sheet with our previously
stated underwriting strategy of leaning into our specialty
insurance business,” said Vince Tizzio, President and CEO of AXIS.
“Furthermore, we continue to be focused on advancing the strategic
priorities laid out at our Investor Day in May of driving organic
growth, reinvesting in the business, and managing our capital for
the benefit of shareholders. We are pleased to be partnering with
Enstar in advancing our strategic priorities.”
Dominic Silvester, Enstar’s Chief Executive Officer said, “This
transaction showcases Enstar’s market-leading position and, being
the largest loss portfolio transfer announced in the industry so
far this year, it is another example of our ability to deliver
significant reinsurance solutions to our global clients. We look
forward to building a lasting partnership with AXIS, a leading
provider of specialty lines insurance and reinsurance.”
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 leading global insurance group that
offers innovative capital release solutions through its network of
group companies in Bermuda, the United States, the United Kingdom,
Continental Europe, Australia, and other international locations. 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 Cautionary Statement
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. These
statements include statements regarding the intent, belief or
current expectations of AXIS and its management team. Investors can
identify these statements by the fact that they do not relate
strictly to historical or current facts. AXIS intends these
forward-looking statements to be covered by the safe harbor
provisions for forward-looking statements in the United States
federal securities laws. In some cases, these statements can be
identified by the use of forward-looking words such as "may",
"should", "could", "anticipate", "estimate", "expect", "plan",
"believe", "predict", "potential", "intend" or similar expressions.
Forward-looking statements contained in this press release,
including statements about expectations regarding the reserves
ceded, speak only as of the date they are made, are not guarantees
of performance and involve risks and uncertainties, and actual
results may differ materially from those projected forward-looking
statements as a result of various factors. In particular, AXIS may
not be able to complete the proposed transaction on the terms
summarized above or other acceptable terms, or at all, due to a
number of factors, including but not limited to the failure to
obtain regulatory approvals or to satisfy other closing conditions.
Important risk factors regarding AXIS can be found under Item 1A,
'Risk Factors' in its most recent Annual Report on Form 10-K filed
with the Securities and Exchange Commission ("SEC"), as those
factors may be updated from time to time in its periodic and other
filings with the SEC, which are accessible on the SEC's website at
www.sec.gov, and are incorporated herein by reference. AXIS
undertakes no obligation to update or revise publicly any
forward-looking statements, whether as a result of new information,
future events, or otherwise.
Enstar Cautionary Statement
This press release contains certain forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995. These statements include statements regarding the intent,
belief or current expectations of Enstar and its management team.
Investors can identify these statements by the fact that they do
not relate strictly to historical or current facts. They use words
such as ‘aim’, ‘ambition’, ‘anticipate’, ‘estimate’, ‘expect’,
‘intend’, ‘will’, ‘project’, ‘plan’, ‘believe’, ‘target’ and other
words and terms of similar meaning in connection with any
discussion of future events or performance. Investors are cautioned
that any such forward-looking statements, including statements
about expectations regarding the reserves ceded, speak only as of
the date they are made, are not guarantees of future performance
and involve risks and uncertainties, and that actual results may
differ materially from those projected in the forward-looking
statements as a result of various factors. In particular, Enstar
may not be able to complete the proposed transaction on the terms
summarized above or other acceptable terms, or at all, due to a
number of factors, including but not limited to the failure to
obtain regulatory approvals or to satisfy other closing conditions.
Important risk factors regarding Enstar can be found under the
heading “Risk Factors” in Enstar’s Form 10-K for the year ended
December 31, 2023 and Enstar’s Form 10-Qs for the quarters ended
June 30, 2024 and September 30, 2024 and are incorporated herein by
reference. Furthermore, Enstar undertakes no obligation to update
any written or oral forward-looking statements or publicly announce
any updates or revisions to any of the forward-looking statements
contained herein, to reflect any change in its expectations with
regard thereto or any change in events, conditions, circumstances
or assumptions underlying such statements, except as required by
law.
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AXIS:
For Investors: Cliff Gallant +1 (415) 262-6843
investorrelations@axiscapital.com
For Media: Nichola Liboro +1 (917) 705-4579
nichola.liboro@axiscapital.com
Enstar:
For Investors: Matthew Kirk +1 (201) 743-7734
investor.relations@enstargroup.com
For Media: Jenna Kerr +44 (0) 771-487-187
communications@enstargroup.com
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