RiverStone International Expands Legacy Acquisition Strategy with New Reinsurance Agreement
RiverStone International, a prominent player in the legacy acquisition sector, has recently made headlines by signing a significant reinsurance-to-close contract with Asta Managing Agency. This strategic agreement involves the closure of the 2022 underwriting year of account for Hampden Risk Partners (HRP) Syndicate 2689, which will now transition into RiverStone International Syndicate 3500. This move not only highlights RiverStone’s commitment to its growth strategy but also reinforces its position within the reinsurance market.
Financial Overview of the Transaction
As of the third quarter of 2024, the net technical provisions related to this transaction have been reported at £62.5 million (approximately US$78.7 million). This substantial figure underscores the financial implications and responsibilities that accompany the closure of the underwriting year. By integrating these provisions, RiverStone International aims to enhance its portfolio and streamline its operations in the legacy insurance market.
Leadership Insights on the Partnership
Andy Creed, the UK CEO and group CFO of RiverStone International, expressed enthusiasm about the partnership with Asta and Hampden. He stated, “We are pleased to have partnered with Asta and Hampden to complete this transaction. RiverStone International remains committed to being the premier acquirer of legacy business in Lloyd’s, and we are dedicated to supporting the success of our clients and the wider market in this space.” This sentiment reflects RiverStone’s ongoing dedication to fostering strong relationships within the industry.
Chris Sharp, the active underwriter for HRP Syndicate 2689, also commented on the transaction, emphasizing the significance of closing the 2022 underwriting year. He noted, “The closure of the 2022 underwriting year of account and prior in this manner further reinforces our commitment to our ‘intelligent follow’ model as introduced for the 2023 year of account.” This model is designed to enhance operational efficiency and risk management within the reinsurance framework.
About RiverStone International
RiverStone International has established itself as a leader in the acquisition and reinsurance of legacy and discontinued insurance business. With operations spanning the UK, Lloyd’s of London, Bermuda, the U.S., and Europe, the company has successfully navigated a diverse array of transactions. Since 2010, RiverStone has acquired over US$17.3 billion in liabilities and currently manages approximately US$6.9 billion in total liabilities. This impressive track record positions RiverStone as a formidable entity in the reinsurance landscape.
The Importance of Legacy Acquisitions in Today’s Market
In the current insurance environment, the acquisition of legacy portfolios is becoming increasingly vital. Companies like RiverStone International play a crucial role in facilitating these transactions, allowing organizations to offload outdated liabilities while focusing on their core business operations. This not only benefits the acquirers but also enhances market stability and promotes efficient capital allocation within the industry.
Future Outlook for RiverStone International
As RiverStone International continues to expand its legacy acquisition strategy, industry observers are keen to see how the company will leverage its recent agreements to further its market presence. The successful integration of the 2022 underwriting year into Syndicate 3500 is just one of many steps RiverStone is likely to take as it navigates the complexities of the reinsurance market.
In Summary
RiverStone International’s recent reinsurance-to-close agreement with Asta Managing Agency marks a significant milestone in its ongoing legacy acquisition strategy. With substantial financial provisions and a commitment to market leadership, RiverStone is poised to enhance its operations and support its clients effectively. As the company continues to pursue opportunities in the legacy space, its impact on the insurance and reinsurance landscape will undoubtedly be noteworthy.
For further insights into the reinsurance industry, consider exploring resources from the International Association of Insurance Supervisors or the Insurance Information Institute. These platforms provide valuable information on trends, regulations, and best practices within the insurance sector.