Legacy solutions provider, RiverStone International, has secured an innovative $305 million reinsurance layer to support the underwriting of a series of new Lloyd’s transactions effective January 1st, 2023.
The new layer is underwritten by newly created Aon White Rock cell company, Xenon IC Limited, with financing led by JP Morgan. It was both designed and placed by re/insurance broker Aon’s capital advisory team in London.
Essentially, it provides a fully collateralised layer of reinsurance cover supporting the company’s Funds at Lloyd’s, and is able to grow or shrink in line with the future underwriting activity of RiverStone Syndicate 3500.
Additionally, this new layer provides adverse development cover for the syndicate’s policyholders against severe tail events, and also improves the quality and strength of RiverStone International’s balance sheet.
“We are delighted to have completed this significant reinsurance placement which demonstrates our strong focus on maintaining a highly efficient and flexible capital structure in support of our legacy solution offerings,” said Andy Creed, RiverStone International CFO.
“Aon’s engagement and creativity combined with the support and commitment from one of the world’s largest investment banks, JP Morgan is testament to RiverStone International’s leading market presence in the legacy sector. The product supports the ongoing growth of our syndicate, strengthens security for our customers, and enables us to continue to deliver effective legacy solutions to our Lloyd’s clients.
“In conjunction with the new reinsurance, we have also extended the funding provided by other third-party capital providers, who continue to provide strong support to our growing business. Our capital management and funding position is now more resilient than ever,” he added.
The structure placed by RiverStone International is similar to the one Lloyd’s secured for its central fund in 2021, which was also financed by investment bank JP Morgan.
