Argo Group, the US and international focused specialty insurer, has announced an agreement to sell its Malta business operations, ArgoGlobal Holdings (Malta) Ltd., to legacy and run-off specialist Riverstone Holdings Limited.
The ArgoGlobal SE business unit has been unused for a time, as Argo shifted its focus back to the United States and other international sources of business.
Maintaining a European underwriting hub in Malta is likely seen as less critical for the Bermuda-headquartered insurer, which already has a global platform through which it can write and access business in Europe if it chooses.
In addition, the company has its Argo syndicate 1200 at Lloyd’s, which provides it with access to most global insurance markets.
Riverstone, meanwhile, specialises in acquiring legacy and discontinued books of insurance or reinsurance business, managing them to finality.
“This sale supports our strategy to focus on U.S.-based specialty insurance risks,” explained Andy Borst, interim president of international operations. ArgoGlobal SE business was primarily focused on insuring risks in Europe and has not been actively underwriting business since 2020.
“We are delighted to have executed a second legacy transaction with the Argo Group, which strengthens our important business relationship,” added Luke Tanzer, RiverStone International’s CEO.
“We look forward to working closely with Argo through the completion phase and to continue to service ArgoGlobal SE policyholders and claimants to the high standards currently provided.”
The transaction is subject to regulatory approval and the parties anticipate it closing in the first-half of 2022.
Argo has been downsizing its operational footprint in recent months in an effort to simplify the business, with a sale of its Brazilian underwriting platform, its contract binding P&C team and its Italian operations.
These sales of smaller units followed Argo’s exit from international reinsurance business, as it sold its Ariel Re operations to private equity investors.