Enstar Group enters into ADC agreement with James River Group

Enstar Group (ESGR) has entered into an adverse development cover, or ADC, reinsurance agreement with certain subsidiaries of James River Group (JRVR). An Enstar subsidiary will provide $75M of limit in excess of the existing $160M ADC reinsurance coverage provided to such subsidiaries of James River by State National Insurance earlier this year. The transaction will provide further protection against future adverse reserve development for certain U.S. casualty exposures within James River’s Excess & Surplus Lines segment for accident years 2010 to 2023. Enstar’s subsidiary will also make a $12.5M investment in James River common stock. Completion of the transaction is subject to regulatory approval and satisfaction of other customary closing conditions.