RiverStone, the insurance run-off management firm owned by Fairfax, has assumed a portfolio of reinsurance business from the UK branch of Aioi Nissay Dowa Insurance Company, Ltd (ADI).
The portfolio was transferred under Part VII of the Financial Services and Markets Act 2000 and is effective from January 31, 2020.
The UK Part VII Transfer mechanism has been in place since 2001 and is an increasingly popular tool in the run-off sector, supported more recently by Brexit.
ADI, a subsidiary of Japanese insurer MS&AD, hopes that the deal will provide it with legal and economic finality on the transferred portfolio.
It added that the transfer will enable it to focus resources on its core business.
RiverStone specialises in the management of legacy and run-off re/insurance businesses and portfolios,
Speaking in a recent interview with Reinsurance News, RiverStone UK Managing Director Luke Tanzer noted that the backing of parent company Fairfax enables RiverStone to take a longer-term view and be more opportunistic, due to its lack of annual return pressures.
Earlier this month, RiverStone completed a reinsurance to close (RITC) transaction with the Channel Syndicate at Lloyd’s of London, which is part of global re/insurer SCOR’s Specialty Insurance platform.
And back in December, the firm announced that OMERS, one of the largest Canadian defined benefit pension plans, had agreed to acquire a 40% interest in RiverStone UK.
