RiverStone International reports it has closed on its acquisition of Electric Insurance Co. and its two subsidiaries, Elm Insurance Co. and Electric Insurance Agency.
Electric Insurance is a Beverly, Massachusetts-domiciled insurer licensed in all 50 states and the District of Columbia, Puerto Rico and Canada. Its owner, General Electric (GE), decided to sell the company for $333 million and exit the insurance business as part of its major restructuring begun in 2021 under which GE has transformed itself into three public companies focused on aviation, energy and healthcare.
RiverStone International, which specializes in acquiring and reinsuring legacy and discontinued businesses, will manage Electric’s legacy liability portfolios but will withdraw from personal lines in all states. The firm said the deal gives it a platform to pursue additional legacy acquisitions in North America.
Electric Insurance wrote the commercial insurance including workers’ compensation, auto and general and product liability exclusively for GE and personal lines insurance including auto, home, yacht and personal excess liability primarily for GE employees, retirees and their families. As of January 1, 2024, Electric no longer insured GE’s commercial business.
Electric has created a runoff plan for its personal lines business. The plan includes a multi-state renewal rights transaction agreement with Plymouth Rock Assurance, a Massachusetts-based insurer with experience in handling 15 renewal rights and replacement carrier transactions. Plymouth Rock writes in Massachusetts, New Hampshire, Connecticut, New Jersey, New York and Pennsylvania.
In Massachusetts alone, Plymouth Rock will have renewal rights to about 6,000 auto, 5,000 home and 1,770 personal liability policies representing a total of about $17 million in premium. It will arrange placement assistance for 45 yacht policies, a risk it does not write.
Elm Insurance Co. was formed by GE in 1983 as a Vermont captive insurer to provide Electric Insurance with management, accounting and other services. Electric Insurance Agency was formed in 1992 primarily to place business with the National Flood Program.
In 2006, Electric Insurance established a Canadian branch based in Toronto to write commercial direct auto and commercial general liability for General Electric. The branch also assumes 100% of the exposure of the Canadian policies written by ACE. In May 2021, Electric Insurance sold its Ireland subsidiary.
Operating in the UK company and Lloyd’s of London markets, Bermuda, and Europe, RiverStone International has transacted a variety of deals – from insurance and reinsurance portfolio transfers to company purchases, acquiring more than US$14.5billion of liabilities since 2010 and with around US$6.8 billion of total liabilities.
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