Axis Capital, Enstar Group enter loss portfolio transfer reinsurance agreement

Axis Capital (AXS) and Enstar Group (ESGR) announced that they have entered into a loss portfolio transfer, or 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. Under the LPT reinsurance agreement, which is structured as a 75% ground-up quota share, Axis will retrocede to Enstar $2.3B of reinsurance segment reserves. This transaction is predominantly attributable to casualty portfolios related to 2021 and prior underwriting years totaling $3.1B at September 30. Axis expects to recognize an approximate $60M 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.