Enstar Enters Adverse Development Cover Agreement With AIG
Portfolio Pulse from Benzinga Newsdesk
Enstar has entered into an adverse development cover agreement with AIG. Under the agreement, Enstar will provide $400 million of adverse development cover in excess of carried loss reserves on assumed reinsurance contracts underwritten by Validus Re.
September 05, 2023 | 11:32 am
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POSITIVE IMPACT
AIG has entered into an adverse development cover agreement with Enstar, which could potentially limit its financial exposure.
The agreement with Enstar provides AIG with a cover for adverse development, which could limit its financial exposure on assumed reinsurance contracts. This could potentially be seen as a positive move by investors, leading to a positive impact on the stock.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100
NEGATIVE IMPACT
Enstar will provide $400 million of adverse development cover to AIG, potentially increasing its risk exposure.
Enstar's agreement to provide $400 million of adverse development cover to AIG increases its risk exposure. This could potentially be seen as a negative move by investors, leading to a negative impact on the stock.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100