RiverStone Enters Loss Portfolio Transfer Reinsurance Agreement With AXIS Capital

RiverStone International, the Bermuda-based acquirer and reinsurer of legacy and discontinued insurance business, announced it has entered into loss portfolio transfer (LPT) reinsurance agreements with affiliates of AXIS Capital Holdings Ltd.

The LPT agreements cover several of its professional lines and liability insurance portfolios, predominantly relating to 2019 and prior accident years.

The transaction, subject to regulatory approval, covers net reserves for losses and loss expenses of approximately $400 million and provides ground-up cover to a policy limit of $605 million.

“We are very pleased that AXIS has selected RiverStone as its partner for this transaction, and it is a testament to our ability to provide flexible effective solutions, helping us maintain our position as a market leader. As we continue with our long-term growth plan, this is a significant milestone in our acquisition strategy with RiverStone’s Bermuda operations,” commented David Rocke, group head of M&A and managing director of RiverStone International Bermuda Ltd.

“[The] transaction provides AXIS with retroactive reinsurance cover for businesses that we generally exited years ago. We acquired the protection at a cost substantially in line with our carried reserves which together with the modest transactional expenses will have an immaterial impact on our fourth quarter earnings,” said Pete Vogt, chief financial officer at AXIS. “The agreements will protect AXIS from prior year reserve development on the subject business over the contract term, provided this remains within the limit of the agreements.”

The transaction was facilitated by Aon’s Capital Advisory team.

Source: RiverStone International

Topics Profit Loss Reinsurance