Enstar Group has announced the completion of a previously disclosed loss portfolio transfer (LPT) agreement between its Lloyd’s syndicate, Syndicate 2008, and Atrium Syndicate 609.
Syndicate 2008 is managed by Enstar Managing Agency Limited, and Atrium Syndicate 609 is managed by Atrium Underwriters Limited. The agreement enables Atrium Syndicate 609 to transfer approximately US$196 million in net loss reserves to Enstar’s Syndicate 2008. This figure reflects Atrium’s carried reserves as of the third quarter of 2024.
This transaction covers Atrium’s discontinued portfolios, specifically marine treaty reinsurance, property treaty reinsurance, and US contractors general liability, based on reserves as of Q3 2024. The transfer applies to business underwritten for the 2023 and prior years, with all associated claims handling responsibilities now managed by Syndicate 2008.
The transaction was finalized following the receipt of necessary regulatory approvals and the fulfillment of other closing conditions. “This transaction allows us to apply our specialist claims handling capabilities and bespoke solution approach to a portfolio in the Lloyd’s marketplace,” said Enstar CEO Dominic Silvester.
Enstar’s recent financial performance has been strong, driven by disciplined capital management and favorable investment returns. In its latest disclosed results, for the full year 2023, Enstar reported a net income attributable to ordinary shareholders of US$1.1 billion, a significant improvement from a net loss of US$906 million in 2022. This solid performance led to a return on equity of 24.2% and a 31% growth in book value per ordinary share, reaching US$343.45.
The company has not yet released its 2024 financials; however, Enstar has noted its continued engagement in substantial reinsurance transactions. These include agreements with AXIS Capital and QBE, positioning the company to sustain its positive financial performance. The AXIS Capital transaction, announced in December, involved a US$2.3 billion LPT agreement. AXIS retroceded US$2.3 billion of reinsurance segment reserves, primarily related to casualty portfolios from underwriting years 2021 and prior, totaling US$3.1 billion as of September 30, 2024. The agreement is structured as a 75% ground-up quota share.
