RiverStone International, the largest provider of legacy solutions in the Lloyd’s market, announced it has secured an innovative multi-year excess-of-loss corporate member reinsurance cover.
The reinsurance has been put in place to support the underwriting of a series of new Lloyd’s transactions, effective from Jan. 1, 2023, including the previously announced reinsurance-to-close (RITC) and loss portfolio transfer reinsurance (LPT) with MS Amlin.
The reinsurance is held by RiverStone International’s corporate member at Lloyd’s — RiverStone Corporate Capital Ltd., said a RiverStone representative, explaining that the reinsurance, in effect, provides protection against adverse development of RiverStone Syndicate 3500.
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The US$305 million reinsurance layer is underwritten by the newly created Aon White Rock cell company, Xenon IC Ltd., with financing led by investment bank JP Morgan. The reinsurance was designed and placed by Aon’s capital advisory team in London.
The new structure provides a fully collateralized layer of reinsurance supporting RiverStone International’s Funds at Lloyd’s, and has the ability to grow or shrink in line with the future underwriting activity of RiverStone Syndicate 3500. The structure also provides adverse development cover protection for the syndicate’s policyholders against severe tail events, and it further improves the quality and financial 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,” commented Andy Creed, chief financial officer of RiverStone International.
“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,” Creed added. “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, RiverStone also has extended the funding provided by other third-party capital providers, which “continue to provide strong support to our growing business,” he said. “Our capital management and funding position is now more resilient than ever.”
Source: RiverStone International
Topics Trends Profit Loss Excess Surplus Reinsurance Lloyd's
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