ENSTAR COMPLETES ADVERSE DEVELOPMENT DEAL WITH MAIDEN RE

Bermudian underwriting and run-off specialist Enstar Group has completed an adverse development cover reinsurance transaction with Maiden Re to address losses that Maiden incurred prior to 2019 on a quota share reinsurance contract with AmTrust Financial’s Bermudian unit. Under the deal, Enstar will cover up to $600m in Maiden losses above a $2.18bn retention. Enstar will receive $445m of premium and post an equivalent amount of collateral in the form of letters of credit. The deal is one of several that Maiden has completed to improve its capital position. Maiden also entered into a $330.7 commutation agreement of certain workers’ compensation loss reserves to AmTrust, and a post-termination endorsement with AmTrust to enable operation of the Enstar agreement and amend the programme loss corridor between Maiden and AmTrust.