15 Dec, 2022
RiverStone International Announces Loss Portfolio Transfer Deal with AXIS Capital
Pembroke, Bermuda, December 15, 2022 – RiverStone International today announced that it has entered into loss portfolio transfer (“LPT”) reinsurance agreements with affiliates of AXIS Capital Holdings Limited (“AXIS Capital” or “AXIS” or “the Company”) (NYSE: AXS), which cover several of its professional lines and liability insurance portfolios, predominantly relating to 2019 and prior accident years.
The transaction, subject to regulatory approval, covers net reserves for losses and loss expenses of approximately $400 million and provides ground-up cover to a policy limit of $605 million.
David Rocke, group head of M&A and managing director of RiverStone International Bermuda Limited said: “We are very pleased that AXIS has selected RiverStone as its partner for this transaction, and it is a testament to our ability to provide flexible effective solutions, helping us maintain our position as a market leader. As we continue with our long-term growth plan, this is a significant milestone in our acquisition strategy with RiverStone’s Bermuda operations.”
Pete Vogt, Chief Financial Officer at AXIS said: “We’re pleased to partner with RiverStone International, a leading reserve run-off specialist with a reputation for strong claims handling. Today’s transaction provides AXIS with retroactive reinsurance cover for businesses that we generally exited years ago. We acquired the protection at a cost substantially in line with our carried reserves which together with the modest transactional expenses will have an immaterial impact on our fourth quarter earnings. The agreements will protect AXIS from prior year reserve development on the subject business over the contract term, provided this remains within the limit of the agreements.”
The transaction was facilitated by Aon’s Capital Advisory team.
About RiverStone International
RiverStone International is an industry-leading acquirer and reinsurer of legacy and discontinued insurance business. Operating in Bermuda, Europe, the U.K. company and Lloyd’s of London markets, RiverStone International has transacted a wide variety of deals – from insurance and reinsurance portfolio transfers to company purchases, acquiring over $7 billion of liabilities since 2010 and with around $4 billion of liabilities currently under management. RiverStone International’s highly skilled and tenured professionals employ ownership, accountability, commitment, and an open and flexible approach to all transactions to provide transactional certainty, deliver desired outcomes and maintain clients’ reputations. For further information about RiverStone International please visit: www.rsml.co.uk
About AXIS Capital
AXIS Capital, through its operating subsidiaries, is a global specialty underwriter and provider of insurance and reinsurance solutions. The Company has shareholders’ equity of $4.3 billion at September 30, 2022, and locations in Bermuda, the United States, Europe, Singapore and Canada. Its operating subsidiaries have been assigned a financial strength rating of “A+” (“Strong”) by Standard & Poor’s and “A” (“Excellent”) by A.M. Best. For more information about AXIS Capital, visit our website at www.axiscapital.com.
Federica Aversa, Global Brand and Communications Manager
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Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934.
Forward-looking statements contained in this press release include without limitation information regarding AXIS Capital’s expectations of the financial impact of the transaction and prior year reserve development.
Forward looking statements only reflect AXIS Capital’s expectations and are not guarantees of performance. These statements involve risks, uncertainties and assumptions. Readers should carefully consider the risks described under Item 1A, ‘Risk Factors’ in AXIS Capital’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”), as those factors may be updated from time to time in AXIS Capital’s periodic and other filings with the SEC which are accessible on the SEC’s website at www.sec.gov. AXIS Capital undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.