Enstar Agrees Adverse Development Cover with Markel
Key Highlights
- ➤Enstar will receive $2.4 billion to reinsure Markel’s last-to-pay $2.3 billion reserves
- ➤Agreement covers Markel’s $4.8 billion global reinsurance and discontinued-lines portfolio
- ➤Markel retains the first $2.6 billion of subject reserves
- ➤Enstar provides $1.2 billion of adverse development cover above $4.8 billion
- ➤Transaction expected to close by end of fourth quarter 2026, pending regulatory approval
Expert Statements
Dominic Silvester, Chief Executive Officer of Enstar
“Markel’s decision to partner with Enstar reflects our financial strength and our expertise in evaluating and underwriting complex portfolios at scale. The agreement will give Markel greater certainty over its legacy liabilities as it focuses on growing its core specialty insurance business. We look forward to continuing our work with Simon Wilson and his team once the transaction closes.”
HAMILTON, Bermuda, Oct. 28, 2026 (GLOBE NEWSWIRE) -- Enstar Group Limited (“Enstar”) today announced that its wholly-owned subsidiary, Cavello Bay Reinsurance Limited, has entered into an adverse development cover reinsurance agreement with Markel Insurance, the insurance operations within Markel Group (NYSE:MKL). The agreement covers Markel’s run-off global reinsurance portfolio and certain discontinued lines within its insurance operations for underwriting years 2025 and prior.
Under the terms of the agreement, Enstar will receive $2.4 billion in consideration to reinsure the ‘last-to-pay’ $2.3 billion of reserves within a $4.8 billion portfolio, with Markel retaining the first $2.6 billion. In addition, Enstar will provide $1.2 billion of adverse development cover above the $4.8 billion of subject reserves. Markel will retain administrative and claims handling responsibilities for the portfolio.
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