Below are some press releases from company’s with preferred stock or baby bonds outstanding.
CorEnergy Announces Third Quarter 2022 Results
Great Elm Group, Inc. Schedules Fiscal 2023 First Quarter Earnings Release and Conference Call
LifeMD, Inc. Reports Third Quarter 2022 Results
Brookfield Announces Strong Third Quarter Results
Enstar Completes Loss Portfolio Transfer With Argo
Fossil Group, Inc. Reports Third Quarter 2022 Financial Results
Any of you familiar with the reinsurance industry? Just reading and trying to understand that press release from Enstar (who issued $500M in Jr Subordinated Fix-Reset Debt this past January).
“Enstar Group Limited … announced today that one of its wholly-owned subsidiaries has closed its Loss Portfolio Transfer transaction with specialty insurance underwriter Argo Group … to reinsure a number of its direct U.S. casualty insurance portfolios relating to accident years 2011 to 2019. Enstar’s subsidiary covers ground up reserves of $746 million and an additional $275 million of cover in excess of $821 million, up to a policy limit of $1.1 billion. Argo will retain a loss corridor of $75 million up to $821 million.”
I think this is saying that Enstar has taken on a portfolio of Argo’s policies, and for that portfolio, will cover the first $746M of losses, Argo will cover the next $75M (the “corridor up to $821M”), and Enstar will cover an additional $275M, totaling $1.1B in all. Correct so far?
What’s missing is what Enstar gets in return: presumably whatever loss reserves Argo had allocated to those policies?