The Market Today
“Run-off has changed over the years and we believe there is a good outlook for the future of the market.”
Leading industry broker operating in both Europe and the US
The world is moving faster and becoming more complex.
Today, insurers and reinsurers face more competition in premiums, lower interest rates, rising claims and litigation, and a host of other factors that make the industry more challenging than before.
At the same time, there are significant opportunities and ways to successfully navigate through these issues. These include new forms of insurance to manage risk and a versatile run-off industry.
The run-off industry is in some ways still evolving but in other ways, it has become a positive force for change and a legitimate tool for Boards and management to improve their economics.
At RiverStone, we believe insurers and reinsurers across the globe face an increasingly attractive opportunity to use run-off solutions to reduce risk, enhance returns and help focus their business.
What is run-off?
The strategic resolution of financial and operational issues via company disposal or exiting a non-core business.
“We’re not trying to be like everyone else – people see us across the table and there is a marked difference.”
Matt Kunish Executive Vice President, Chief Actuary, Head of Acquisitions and Legacy Solutions
Our mission is to provide solutions to insurers and reinsurers by paying valid claims on time, ensuring finality and creating peace of mind for sellers.
Stakeholders in the run-off industry often face a complex maze of factors and information about the risks and rewards that go with different opportunities. RiverStone focuses on transparency and staying ahead of the curve on industry issues, so we can act as a vital source of reliable information and value to run-off sellers.
As we create shareholder value, we are also committed to developing a company and culture where all associates are valued, engaged, and accountable. Working under this ethos affords sellers, brokers and other stakeholders the highest levels of professionalism, integrity and accountability as we aim for secure and safe returns with maximum profitability.
- We treat your business and transactions with respect and confidence.
- We offer fair and reliable pricing in creative structures that work for sellers.
- We treat sellers’ staff and customers fairly, including timely payment of valid claims.
- We are proactive in how we engage policy holders, regulators and associates.
- Our approach and ethos aims to help sellers and brokers maintain their reputations.
“RiverStone is so much more professional than anyone else, and they are a class apart in their execution model.”
“RiverStone is a part of Fairfax so there is less pressure to do deals. We can be a bit more discerning about what we do here.”
Paul Carruthers Risk Director
For more than 20 years, The RiverStone Group has been part of the insurance and reinsurance operations of Fairfax Financial Holdings Limited. We have transitioned from managing only Fairfax legacy business to operating as an ongoing global enterprise. Still part of a family of companies and culture based on accountability and continuous improvement, RiverStone today is in the business of acquiring companies and reinsurance portfolios.
Fairfax’s corporate objective is to achieve a high rate of return on invested capital and build long-term shareholder value. Fairfax seeks to differentiate itself by combining disciplined underwriting with the investment of its assets on a total return basis. Fairfax has shown to provide above-average returns over the long-term.
By The Numbers
Fairfax’s companies such as RiverStone Group operate on a decentralized basis, with autonomous management teams applying a focused underwriting strategy to their markets, with the results to prove it.
RiverStone strives to balance the certainty associated with deals with loss preparedness, which may serve to minimize risks to sellers and brokers who engage us.
Unaudited figures at December 31, 2019
In Shareholders’ Equity
Unaudited figures at June 30, 2020
In Shareholders’ Equity
“With Fairfax standing behind them, we know RiverStone will be here for the long run.”