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.
Completion of the transaction is expected by the end of the fourth quarter of 2026, subject to the receipt of regulatory approval and satisfaction of other customary closing conditions.
Dominic Silvester, Enstar's Chief Executive Officer, said: "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."
Insurance Advisory Partners LLC acted as advisor to Enstar on the transaction. Aon acted as reinsurance broker and advisor to Markel.
About Enstar
Enstar is a global insurance and reinsurance group providing leading retrospective and specialist underwriting capabilities through its network of group companies across Bermuda, the United States, the United Kingdom, Continental Europe and Australia. With over $19.9 billion in total assets, $5.0 billion in shareholders' equity (as of 30 June, 2026), and more than 130 transactions completed since formation, Enstar has a proven record of pioneering innovative re/insurance solutions. The Group's financial strength is supported by "A" ratings from AM Best and S&P for its flagship reinsurer, Cavello Bay Reinsurance Limited. Enstar is privately owned and supported by investment vehicles managed by affiliates of Sixth Street, a leading global investment firm. For further information about Enstar, see www.enstargroup.com.
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For Media: Jenna Kerr (communications@enstargroup.com) or FTI Consulting (Enstar@fticonsulting.com)
