RiverStone completes deal to RITC Syndicate 376
RiverStone has completed its deal to reinsure-to-close (RITC) the open years of Syndicate 376. The syndicate has been under the control of Whittington Capital Management, and is one of the largest in run-off in the Lloyd’s market. Syndicate 376 has gross liabilities of approximately $250mn, down from around $1bn.
Alleghany’s Syndicate 376 collapsed on the Central Fund at the end of 2001 leading to losses for the market. It wrote a number of classes, including property and aviation reinsurance.
The Syndicate 376 RITC, along with376/2376 lines of business from 1993-2001, includes Syndicate 1183/2183 exposures from 1993-1999, Syndicate 1207 from 1996-1999 and Syndicate 1038 from 1993-1995.
We are now working with Whittington to embed376 through the first quarter, 376 has very good synergies for the group, with liabilities including World Trade Center risk and non-marine professional indemnity business. Reinsurance exposure amounts to around $100m. Some of the losses still within the 376 portfolio are very similar to our involvement in 506, our main aim is to return value to shareholders and 376 offers that opportunity.
We first looked at Syndicate 376 in June last year and beat a number of other legacy specialists to win the tender.
There has been a lot of RITC coming to market but we now expect a downturn in activity from Lloyd’s. 2009-2010 has been frenetic for RITC activity, but there are not many opportunities of this size left in the Lloyd’s run-off arena. We now continue to assess the potential impact of Solvency II modeling on portfolios and acquisition opportunities.