Markel Group said on 28 October 2026 that its insurance operations had agreed an adverse development cover (ADC) with Enstar. The cover applies to run-off business from Markel's Global Reinsurance division and certain exited lines, for the 2025 and earlier underwriting years. Enstar's subsidiary Cavello Bay Reinsurance, rated A by S&P, provides the reinsurance.
The subject reserves total $4.8bn. According to the release, Markel retains the first $2.6bn and cedes the next $2.3bn to Enstar. It would also get a $1.2bn layer of cover for adverse development above the $4.8bn of subject reserves. Markel pays Enstar a $120m risk premium and keeps control of claims handling.
Markel expects the effect on its fourth-quarter 2026 underwriting results to be immaterial. Closing is expected by the end of the fourth quarter, subject to regulatory approval and other customary conditions.
Simon Wilson, chief executive of Markel Insurance, said the agreement gives "additional certainty as these liabilities continue to run off". The company presents the cover as part of its strategic focus on specialty insurance, with the reinsurance book now in run-off.
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Markel Group ↗Company · 28 Oct 2026
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