Legacy acquirer and reinsurer RiverStone International has completed a reinsurance-to-close (RITC) and a loss portfolio transfer (LPT) with MS Amlin Underwriting Limited, with net technical provisions of £1.2 billion.
Under the agreement, RiverStone provides MS Amlin Syndicate 2001 with a RITC of the 2018 and prior years of account, and a LPT reinsurance of specific discontinued classes in the 2019 to 2021 years of account.
The RITC part of this transaction will be a split arrangement, as the 2018 and prior years of account have already been closed into MS Amlin’s 2020 year of account.
RiverStone International will undertake the split RITC and LPT via its specialist legacy syndicate 3500. Both the RITC and LPT became effective January 1st, 2023, with net technical provisions of £1.2 billion.
David Rocke, group head of M&A of RiverStone International, said: “We are delighted that MS Amlin has once again chosen RiverStone International as its partner in meeting its strategic aims. This transaction further reinforces the trust key counterparties in the market have in us. We will ensure that MS Amlin’s excellent reputation is maintained, and their insureds continue to receive the highest possible level of service.”
Andrew Carrier, MS Amlin Chief Executive Officer (CEO), added: “I am delighted we have completed this landmark transaction, which includes the largest third-party RITC in Lloyd’s history. Through this transaction, we create the space to concentrate on our future strategy, reduce volatility, and better utilise our capital and resources. Transferring these legacy accounts to a trusted partner like RiverStone International, maintains our confidence in the support available from both our organisations to effectively service our clients’ historic claims, as well as their current and future needs.
“I would like to thank RiverStone International for their professionalism, rigour and collaborative approach to partnership, as well as Gallagher Re for their vital support throughout this process.”
James Mounty, global leader of customised & capital solutions at reinsurance broker Gallagher Re, said: “Helping clients maximise their capital efficiency is what drives our team of retrospective solutions specialists, and we are pleased to have advised MS Amlin on this large and complex transaction. By devising innovative insurance restructuring solutions for clients’ legacy portfolios, we can help them redeploy capital and take advantage of trading conditions.
“The scale of this transaction also demonstrates that the value and benefits created by back-book optimisation are increasingly accepted and embraced by those at the forefront of our industry.”
