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.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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