RiverStone International has entered into loss portfolio transfer (LPT) reinsurance agreements with affiliates of AXIS Capital Holdings (AXIS), which cover several of its professional lines and liability insurance portfolios, predominantly relating to 2019 and prior accident years.
The transaction is subject to approval, it covers net reserves for losses and loss expenses of approximately US $400 million and provides ground-up cover to a policy limit of US $605 million.
David Rocke, group head of M&A and managing director of RiverStone International Bermuda, says: “We are very pleased that ACIS has selected RiverStone as its partner for this transaction. This is a significant milestone in our acquisition strategy with RiverStone’s Bermuda operations.”
Pete Vogt, chief financial officer at AXIS, adds: “[This] 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. 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.”
