Enstar completes second property ILS transaction with acquisition of Bermuda reinsurer

Enstar Group Limited, a company specialising in managing runoff insurance and reinsurance portfolios, through its wholly-owned subsidiary, Cavello Bay Reinsurance Limited, has acquired a Bermuda-domiciled Class 3B insurer and segregated accounts company.

The newly acquired reinsurer underwrote property reinsurance business between 2020 and 2023 on behalf of third-party investors, assuming the risk through retrocession agreements with a fronting carrier.

The firm reported $66 million of shareholders’ equity at the end of July 2024.

Enstar has confirmed that the reinsurer will merge into Cavello Bay and a consolidated and amended retrocession agreement between the fronting carrier and Cavello Bay will then become effective.

Dominic Silvester, Chief Executive Officer of Enstar, commented, “This acquisition is our second transaction in the property ILS space in recent months, which we see as a growth market for legacy solutions.

“The deal structure eliminates collateral requirements, demonstrating the benefit of Cavello Bay’s strong balance sheet and financial strength rating.”

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