March 5, 2021
RiverStone completes exclusive agreement with Hamilton Managing Agency Limited
London, 05 March
RiverStone Europe is pleased to announce that it has completed a reinsurance-to-close (RITC) transaction of the legacy liabilities of the 2018 and prior years of account of Syndicate 4000, managed by Hamilton Managing Agency Limited, a wholly-owned subsidiary of Hamilton Insurance Group, Ltd. (“Hamilton”). The transaction transfers legacy Pembroke business that remained with Liberty Mutual Group following Hamilton’s acquisition of Pembroke and Syndicate 4000 in August 2019.
This RITC with net technical provisions of over £370 million, received Lloyd’s approval in early February, with the RITC becoming effective from 1 January 2021. RiverStone Europe will now work with Hamilton to transition the business operations over the coming months.
“We are very pleased that Hamilton and Liberty selected RiverStone Europe as their partner for this transaction.”, said Luke Tanzer, RiverStone Europe's Managing Director. “We have worked closely with them to ensure their strategic objectives are achieved through this RITC, and we will ensure that all stakeholders continue to receive the highest possible level of service. The completion of this transaction reinforces RiverStone Europe’s competitive edge and outstanding reputation in the market.”
“This transaction is the final act of what has been a transformational deal for Hamilton,” said Adrian Daws, CEO, Hamilton Managing Agency Limited*. “As we complete the integration of our acquired operations from Liberty, we’re well-positioned to continue to focus on our long-term development in building a global, diversified specialty insurance and reinsurance franchise.”
*Subject to regulatory approval.
January 5, 2021
The Neon Group of companies became part of RiverStone Holdings (RiverStone) from 1 January 2021
Following an agreement signed on 26 September 2020, and following receipt of change of control approval by all relevant regulatory bodies, including the PRA, FCA and Lloyd’s, the Neon Group of companies, including the Lloyd’s Members GAI Indemnity Ltd, Lavenham Underwriting Ltd and Sampford Underwriting Ltd, became part of RiverStone Holdings Ltd (RiverStone) from 1 January 2021.
December 2, 2020
Fairfax Announces Sale of RiverStone Europe to CVC
TORONTO, Dec. 02, 2020 (GLOBE NEWSWIRE) -- Fairfax Financial Holdings Limited (“Fairfax”) (TSX: FFH and FFH.U) announces that it has entered into a binding agreement with CVC Capital Partners (“CVC”) to sell all of its interests in RiverStone Europe to CVC Strategic Opportunities Fund II. OMERS, the pension plan for Ontario’s municipal employees, has also agreed to sell all of its interests in RiverStone Europe as part of the transaction.
The purchase price to be received by Fairfax on closing of the transaction is approximately US$750 million. Fairfax will also be entitled to receive up to US$235.7 million post-closing under a contingent value instrument. Luke Tanzer will remain the Managing Director of RiverStone Europe and Nick Bentley, the Chief Executive Officer of the RiverStone Group, will remain on the board of RiverStone Europe post-closing.
After closing, RiverStone Europe will also operate under the name RiverStone International and will seek to continue its successful track record of acquisitions and growth led by its existing management team.
“We are very pleased to enter into this transaction with CVC,” said Prem Watsa, Chairman and Chief Executive Officer of Fairfax. “RiverStone Europe is an industry leader in run-off insurance services, and CVC’s scale and vision will give RiverStone Europe, under the continued leadership of Luke and his management team, the opportunity to further grow the business. Nick and Luke are also fully supportive of this transaction, based on their strong beliefs that it was the best way for RiverStone Europe to continue to grow and pursue run-off transactions. We wish Luke and all of the employees at RiverStone Europe much success in the future. Fairfax remains committed to continuing to grow its other European businesses, including its Lloyd’s of London activities.”
“I am extremely happy to partner with CVC in this next chapter of our development,” said Luke Tanzer, Managing Director of RiverStone Europe. “This transaction will provide us with a runway for further growth as we continue to offer the most trusted and effective run-off solutions in the insurance market. We look forward to joining the CVC family and benefitting from their deep experience of financial services, global network and long term pool of capital.”
“As one of the largest global consolidators of non-life run-off insurance books, with a leading position in the UK and Lloyd’s market, embedded cash flows and a predictable financial profile, RiverStone Europe is ideally suited to CVC’s Strategic Opportunities platform, which specializes in backing established businesses in stable markets that have long term growth ambitions,” said Peter Rutland, Managing Partner and Head of Financial Services at CVC. “We have got to know RiverStone and Fairfax over many years, and are delighted to now have the opportunity to work with Luke Tanzer and his experienced team.”
The transaction is subject to customary closing conditions, including various regulatory approvals, and is expected to close in early 2021.
Fairfax is a holding company which, through its subsidiaries, is engaged in property and casualty insurance and reinsurance and the associated investment management.
[Source: Fairfax Financial Holdings]
CVC is making this acquisition through Strategic Opportunities Fund II, a vehicle designed to invest in high-quality businesses that are suited to longer hold investment horizons.
October 12, 2020
Exclusive agreement with Argo Global to complete a reinsurance-to-close (RITC) transaction
RiverStone UK is pleased to announce that we have entered into an exclusive agreement with Argo Global, the Lloyd’s insurer and member of Argo Group, to complete a reinsurance-to-close (RITC) transaction of the 2017 and prior years of account for Syndicate 1200.
Upon completion, RiverStone UK will undertake the RITC of ArgoGlobal’s Syndicate 1200 for 2017 and its prior years with net technical provisions of £356M.
The transaction is expected to receive regulatory approval in the fourth quarter of 2020, with the RITC becoming effective on 1 January 2021.
“We are very pleased that Argo has selected RiverStone as their partner for this transaction.” said Luke Tanzer, RiverStone’s UK Managing Director. “We have worked closely with Argo to ensure their strategic objectives are achieved through this transaction, and we will ensure Argo’s insureds continue to receive the highest possible level of service. This signing reinforces RiverStone’s competitive edge and outstanding reputation in the market.”
October 7, 2020
RiverStone COVID-19 update on 4 November, 2020
Following the government’s announcement of a further lockdown in England for a month from 5 November, this evening we will be temporarily closing our UK offices.
We will continue to operate remotely, keeping open communications with all our clients, business partners and teams across the U.K. We would like to thank everyone for their dedication and outstanding efforts to date.
October 5, 2020
AFG agrees sale of Neon Group of companies to RiverStone
CINCINNATI--(BUSINESS WIRE)--American Financial Group, Inc. (NYSE: AFG) today announced that it has reached a definitive agreement to sell GAI Holding Bermuda and its subsidiaries, comprising the legal entities that own its Lloyd’s of London insurer, Neon, to RiverStone Holdings Limited (“RiverStone”). Upon closing of the sale, AFG expects release of all of its funds at Lloyd’s (FAL) including release of the letters of credit and collateral pledge facility that AFG guarantees in support of Neon’s FAL. This transaction will complete AFG’s exit from the Lloyd’s of London insurance market.
The transaction is expected to close in the fourth quarter of 2020, subject to customary conditions, including receipt of required regulatory approvals. In accordance with generally accepted accounting principles, it is expected that AFG will record the sale in the third quarter; the sale is not expected to have a material impact on AFG’s ongoing results of operations. TigerRisk Capital Markets & Advisory acted as exclusive financial advisor to AFG.
Carl H. Lindner III, AFG’s Co-Chief Executive Officer, stated: “The sale of Neon finalizes AFG’s exit from the Lloyd’s market, following AFG’s decision to place this business into run-off effective in the fourth quarter of 2019. The exit allows us to provide continued focus on our other Specialty P&C businesses and enables us to redeploy capital, increase earnings and returns, and create long-term value for our shareholders.”
Luke Tanzer, RiverStone’s UK Managing Director stated: “We are delighted that AFG has selected RiverStone as their partner for this transaction. We have worked closely and collaboratively with AFG to ensure that their strategic objectives are achieved through this transaction, and we will ensure that Neon insureds continue to receive the highest possible level of service.”
About American Financial Group, Inc.
American Financial Group is an insurance holding company, based in Cincinnati, Ohio with assets of approximately $70 billion as of June 30, 2020. Through the operations of Great American Insurance Group, AFG is engaged primarily in property and casualty insurance, focusing on specialized commercial products for businesses, and in the sale of traditional fixed and indexed annuities in the retail, financial institutions, broker-dealer, and registered investment advisor markets. Great American Insurance Group’s roots go back to 1872 with the founding of its flagship company, Great American Insurance Company.
About RiverStone UK
With over 20 years of experience, RiverStone UK is an industry leader in legacy insurance services, employing over 200 professionals in multiple locations across the UK. RiverStone UK has an outstanding reputation for excellence in both the Lloyd’s and Insurance Company Markets and provides trusted, client focused and effective run-off solutions combined with the highest level of claims services for insureds.
Forward Looking Statements
This press release contains certain statements that may be deemed to be "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. All statements in this press release not dealing with historical results are forward-looking and are based on estimates, assumptions and projections. Examples of such forward-looking statements include statements relating to: the Company's expectations concerning market and other conditions and their effect on future premiums, revenues, earnings, investment activities and the amount and timing of share repurchases; recoverability of asset values; expected losses and the adequacy of reserves for asbestos, environmental pollution and mass tort claims; rate changes; and improved loss experience.
Actual results and/or financial condition could differ materially from those contained in or implied by such forward-looking statements for a variety of reasons including, but not limited to: changes in financial, political and economic conditions, including changes in interest and inflation rates, currency fluctuations and extended economic recessions or expansions in the U.S. and/or abroad; performance of securities markets, including the cost of equity index options; new legislation or declines in credit quality or credit ratings that could have a material impact on the valuation of securities in AFG’s investment portfolio; the availability of capital; changes in insurance law or regulation, including changes in statutory accounting rules and changes in regulation of the Lloyd’s market, including modifications to capital requirements; changes in costs associated with the exit from the Lloyd’s market and the run-off of AFG’s Lloyd’s-based insurer, Neon; the effects of the COVID-19 outbreak, including the effects on the international and national economy and credit markets, legislative or regulatory developments affecting the insurance industry, quarantines or other travel or health-related restrictions; changes in the legal environment affecting AFG or its customers; tax law and accounting changes; levels of natural catastrophes and severe weather, terrorist activities (including any nuclear, biological, chemical or radiological events), incidents of war or losses resulting from pandemics, civil unrest and other major losses; disruption caused by cyber-attacks or other technology breaches or failures by AFG or its business partners and service providers, which could negatively impact AFG’s business and/or expose AFG to litigation; development of insurance loss reserves and establishment of other reserves, particularly with respect to amounts associated with asbestos and environmental claims; availability of reinsurance and ability of reinsurers to pay their obligations; trends in persistency and mortality; competitive pressures; the ability to obtain adequate rates and policy terms; changes in AFG’s credit ratings or the financial strength ratings assigned by major ratings agencies to AFG’s operating subsidiaries; the impact of the conditions in the international financial markets and the global economy relating to AFG’s international operations; and other factors identified in AFG’s filings with the Securities and Exchange Commission.
The forward-looking statements herein are made only as of the date of this press release. The Company assumes no obligation to publicly update any forward-looking statements.
(Source: Business Wire)
June 2, 2020
Skuld agrees sale of Lloyd’s Syndicate 1897 to RiverStone
Oslo and London: 2 June 2020 - Skuld, a leading marine insurance provider, today announces that it has reached an agreement with The RiverStone Group ("RiverStone") for the sale of its Lloyd’s Syndicate 1897, which was placed into run-off in July 2019. The transaction is subject to regulatory approval.
Following a competitive process which began in autumn 2019, Skuld selected RiverStone as run-off provider for Syndicate 1897 from a number of bidders. Once the transfer of the management of corporate members to RiverStone is complete, Skuld will achieve economic and legal finality on the syndicate.
Skuld will continue to underwrite all its hull and offshore energy business as Skuld Hull, the A-rated corporate platform of Skuld Assuranceforeningen, through Skuld UK in London and Skuld Marine Agency in Oslo.
The majority of liabilities within Skuld Syndicate 1897 relate to marine hull & machinery and energy business. Willis Tower Watson Securities served as adviser to both parties in concluding the agreement.
Ståle Hansen, Skuld President and CEO, said: "Skuld remains resolutely focused on the best outcome for our clients and members. We have successfully transitioned our non-P&I clients from Syndicate 1897 to Skuld Hull, our company-market platform, and the sale of the Skuld Syndicate portfolio is a significant step in improving Skuld's operational efficiency.
"Professional support and honouring the solemn promise to our insureds were at the core of thinking throughout this process. RiverStone has an outstanding reputation in the legacy market and we have full confidence they will ensure the highest levels of service and claims handling to all of our clients."
Luke Tanzer, Managing Director of RiverStone UK, added: "We are delighted to announce this transaction with Skuld, an outstanding marine insurer with a market-leading reputation. RiverStone is a respected and longstanding legacy provider that delivers on the promise to insureds and will continue to do so for all policyholders of Syndicate 1897.
"The Skuld Management Team has been resolutely professional throughout this process and it has been a great pleasure to work with them. We have worked closely and collaboratively with the Skuld team to ensure that their strategic objectives are achieved through this transaction and our responsible management and adherence to our core principles, will ensure that their insureds continue to receive the highest possible level of service and that their excellent reputation is maintained."
March 23, 2020
RiverStone COVID-19 update on 23 March, 2020
As we continue to navigate through this unprecedented time, we want to share some of the steps that we are taking to maintain business continuity and the support of our clients, business partners and teams across the U.K and U.S.
Last week saw the closure of all our U.K and U.S offices and the activation of our business continuity plans.
We have invested in better communication platforms and our ability to work remotely, but not in isolation with regular team calls via both telephone and video taking place.
Our response plan
We designated various task forces both in the U.K. and the U.S. to ensure we continue to provide seamless operations and first-class service.
We established a support network to ensure our employees have access to the right services to help them navigate this difficult time and to look after their mental well-being.
We are incredibly proud of everyone's efforts in keeping the company running seamlessly, delivering on our promises and the tremendous team spirit demonstrated by all.
We remain confident in our ability to continue to operate remotely, keeping open communications with all our clients, business partners and teams across the U.K and U.S and would like to thank everyone for their outstanding efforts.
March 14, 2020
RiverStone COVID-19 update
In view of the continued disruption caused by the COVID-19 coronavirus outbreak, please be rest assured that our priority is to continue to provide the first-class client service to which you’ve become accustomed, while protecting the health and safety of our team and their friends and families.
Accordingly, we have taken the decision to close all of our offices across the U.K. and U.S.
We are committed to minimising any disruption. All key personal and functions will operate remotely, accessing systems that ensure the confidentiality, integrity and availability of email, documents and servicing.
We are completely confident in our ability to seamlessly maintain operations and will continue to monitor the situation closely and review all our procedures accordingly.
February 26, 2020
Part VII Transfer of Japanese Reinsurance Portfolios to RiverStone
RiverStone is pleased to announce that, with effect from 31 January 2020, a portfolio of reinsurance business has been transferred from the UK branch of Aioi Nissay Dowa Insurance Company, Ltd (“ADI”) to RiverStone Insurance (UK) Limited under Part VII of the Financial Services and Markets Act 2000.
This transfer provides ADI with legal and economic finality in respect of the transferred portfolio and enables ADI to focus its resources on its core business.
For further information please contact:
RiverStone Insurance (UK) Limited