Markel cedes $2.3B of run-off reserves to Enstar in ADC deal
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Richmond, Va. – October 29, 2026 -- Markel Insurance has agreed to retrocede $2.3 billion of run-off reserves to Enstar under an adverse development cover (ADC) reinsurance agreement. The deal also gives Markel $1.2 billion of protection against reserve deterioration. Markel Insurance is the insurance arm of Markel Group Inc. (NYSE: MKL).
Markel retains the first $2.6 billion of $4.8 billion in subject reserves
The agreement covers subject reserves of $4.8 billion. Markel keeps the first $2.6 billion and passes the next $2.3 billion to Enstar. Markel will pay Enstar a risk premium of $120 million for the adverse loss development cover, which sits above the $4.8 billion of subject reserves.