Legacy reinsurance and run-off specialist RiverStone International has participated in the insurance-linked securities (ILS) market for the first time, entering into a loss portfolio transfer (LPT) reinsurance of portfolios associated with funds managed by Leadenhall Capital Partners.
As the legacy, or run-off market continues to evolve, acquirers in the space are increasingly engaging with ILS and alternative capital structures, enabling investment managers like Leadenhall to transfer legacy liabilities.
This transaction is RiverStone’s first participation in what the firm describes as “an important and growing segment of the global reinsurance industry.”
“This is an important milestone for RiverStone as our first involvement in the insurance-linked securities market. It demonstrates our ability to provide tailored legacy solutions across a broad range of counterparties and risk structures,” said David Rocke, Chief Executive Officer of RiverStone International Bermuda, and Group Head of M&A.
The broker of record for this LPT between RiverStone International and Leadenhall Capital Partners was Aon.
Just last week, RiverStone International announced the completion of loss portfolio transfer (LPT) agreements with QBE Insurance Group, representing approximately $1.6 billion in reserves.
