At a glance
- Enstar absorbs reserve losses above the $4.8 billion threshold, up to the $1.2 billion limit.
- The $120 million premium equals 10% of the $1.2 billion limit and 2.5% of the $4.8 billion of subject reserves.
- For allocators pricing legacy and runoff capacity, the 10% rate on line is the figure to hold against the next adverse development cover.
Markel agreed to pay Enstar a $120 million risk premium for $1.2 billion of adverse development cover above $4.8 billion of its subject reserves.
Enstar absorbs reserve losses above the $4.8 billion threshold, up to the $1.2 billion limit. Completion is expected by year-end 2026.
The $120 million premium equals 10% of the $1.2 billion limit and 2.5% of the $4.8 billion of subject reserves.
For allocators pricing legacy and runoff capacity, the 10% rate on line is the figure to hold against the next adverse development cover.
A 10% rate on line for $1.2B of adverse development cover
Markel's cover from Enstar: risk premium, limit, subject reserves and rate on line, completion expected by year-end 2026
Reported by The Wrap desk from Markel–Enstar adverse development cover terms and CNO Colonial Penn captive cession terms. Published . Corrections