American Financial Group (AFG) has reached a definitive agreement to sell GAI Holding Bermuda and its subsidiaries, comprising the legal entities that own its Lloyd's of London insurer Neon to RiverStone Holdings.
On the close of the sale, AFG said it expects the release of all of its funds at Lloyd’s (FAL) including the release of the letters of credit and collateral pledge facility that AFG guarantees in support of Neon’s FAL.
This transaction, which is set to close in Q2 2020, will complete AFG’s exit from the Lloyd’s of London insurance market. In accordance with generally accepted accounting principles, it is expected that AFG will record the sale in the Q3.
Carl Lindner, AFG’s co-CEO stated: “The sale of Neon finalises AFG’s exit from Lloyd’s market, following AFG’s decision to place this business into run-off effective in the Q4 2019.”
He continued: “The exit allows us to provide continued focus on our other speciality property and casualty businesses and enables us to redeploy capital, increase earnings and returns, and create long-term value for our shareholders.”
Luke Tanzer, RiverStone’s UK managing director, commented: “We are delighted that AFG has selected RiverStone as their partner for this transaction. We have worked closely and collaboratively with AFG to ensure that their strategic objectives are achieved through this transaction, and we will ensure that Neon insureds continue to receive the highest possible level of service.