Enstar
-
Enstar is conducting due diligence around taking on the rest of the Argo back book. -
The share purchases take the founder’s stake in the legacy firm to $124mn.
-
The carrier also reported run-off liability earnings of $109mn, or 3.7% in the third quarter of the year.
-
The process has been narrowed, with parties including Catalina and Premia not going forward.
-
Probitas CEO Ash Bathia praised Enstar for its “innovative and bespoke solution to meet our strategic objectives”.
-
The transaction will eliminate Enstar’s direct exposure to cat business and boost its book value.
-
With the addition of roughly 512,000 shares, Enstar’s interest in Argo was valued at ~$62.7mn at the end of June.
-
The exec warned that there would be “more casualties” of underpricing in the legacy market.
-
The carrier was pushed to a net loss of $493mn by mark-to-market losses in its investment portfolio in Q2.
-
The outgoing exec will remain as a board member, while chief strategy officer David Ni will lead the company’s M&A strategy going forward.
-
A strong long-term financial performance and reserve reductions drove the rating revision.
-
The existing $770mn adverse development cover between the two parties has been absorbed as part of the deal.
Most Recent
-
Reinsurance sector must innovate to retain relevance: Henchoz
08 September 2025 -
Fidelis’s Pine Walk to launch surety cell led by Gobran
08 September 2025 -
Axa XL gearing up to launch standalone, wholesale-only E&S vertical
08 September 2025 -
Balance must be struck on earnings protection: Guy Carpenter
08 September 2025 -
The three keys to unlocking AI: Swiss Re’s Berger
08 September 2025 -
Clouds gather over casualty market conditions
08 September 2025 -
Look for dealmaking in the shadows at Monte Carlo…
08 September 2025