AM Best Comments on Credit Ratings of Cavello Bay Reinsurance Limited Following Enstar Group Limited’s Transaction with Markel Group Inc.

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has commented that the Credit Ratings (ratings) of Cavello Bay Reinsurance Limited (Cavello Bay) (Bermuda), a subsidiary of Enstar Group Limited (ENSTAR) (Bermuda), are unchanged following Enstar’s announcement that it has entered into a reinsurance agreement with Markel Group Inc. (Markel) [NYSE: MKL].

On October 28, 2026, Enstar entered an agreement with Markel to reinsure Markel’s global reinsurance reserves and certain exited lines within its insurance operations, including 2025 and prior underwriting years, within a $4.8 billion portfolio. Markel will retain the first $2.6 billion, ceding the next $2.3 billion to Enstar on a last-to-pay basis. Enstar will receive $2.4 billion to assume the reserves from Markel and will also provide $1.2 billion of adverse development cover, attaching above the $4.8 billion in reserves.

AM Best does not expect Enstar’s balance sheet strength or its risk-adjusted capitalization measured by the BCAR to materially deviate from the projected Best’s Capital Adequacy Ratio (BCAR), score at 99.6% VaR for 2026.

The transaction is expected to close by the end of fourth-quarter 2026 and is subject to regulatory approval and satisfaction of customary conditions precedent to closing the deal.

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