Enstar Group announced that its Lloyd’s syndicate, Syndicate 2008, has finalized a previously disclosed loss portfolio transfer agreement with Atrium Syndicate 609.
Syndicate 2008 is managed by Enstar Managing Agency Limited, while Atrium Syndicate 609 is managed by Atrium Underwriters Limited.
The agreement allows Atrium Syndicate 609 to transfer approximately US$196 million in net loss reserves to Enstar’s Syndicate 2008. The reserve figure reflects Atrium’s carried reserves as of the third quarter of 2024.
This transaction also covers Atrium's discontinued portfolios, including 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 of account, with all associated claims handling responsibilities moving to Syndicate 2008. The transaction was completed following the receipt of required 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 (pictured above).
In its latest disclosed results, Enstar revealed that it achieved a net income attributable to ordinary shareholders of US$1.1 billion for the full year 2023, marking a significant turnaround from a net loss of US$906 million in 2022.
This performance corresponded to a return on equity of 24.2% and a 31% growth in book value per ordinary share, reaching US$343.45. The positive results were driven by favorable investment returns and effective management of run-off liabilities.
The company has yet to report its 2024 financials, although Enstar noted that its continued engagement in substantial reinsurance transactions, such as agreements with AXIS Capital and QBE, positions the company for sustained financial performance.
The AXIS Capital transaction was announced in December, with Enstar inking a US$2.3 billion LPT agreement the former.
This transaction involved AXIS retroceding 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.
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