RiverStone International has completed a loss portfolio transfer (LPT) transaction with SiriusPoint (NYSE: SPNT), assuming a portfolio of legacy reinsurance liabilities with net liabilities of approximately $400 mn.
The agreement is the first transaction between the two companies and forms part of SiriusPoint’s efforts to simplify its operations, strengthen its capital position and exit its legacy reinsurance portfolio.
Marsh Re acted as broker of record for the transaction.
- RiverStone International assumes approximately $400 mn in net legacy reinsurance liabilities from SiriusPoint through an LPT transaction.
- SiriusPoint expects the agreement to simplify its business, improve its capital position and complete its legacy portfolio exit.
- The transaction is the first between RiverStone and SiriusPoint, with Marsh Re serving as broker of record.
RiverStone structures $400 mn loss portfolio transfer
The transaction transfers responsibility for a portfolio of historical reinsurance liabilities to RiverStone, which specializes in managing and resolving legacy insurance and reinsurance exposures.
RiverStone developed a customized LPT arrangement to address SiriusPoint’s portfolio requirements. The companies did not disclose additional financial terms or details of the underlying liabilities.
The $400 mn transaction expands RiverStone’s legacy portfolio and establishes its first transaction relationship with SiriusPoint.
Paul Brockman, Group Chief Executive Officer of RiverStone International, said the agreement demonstrated the company’s ability to structure solutions for complex legacy portfolios.
“This transaction reflects RiverStone’s ability to deliver tailored legacy solutions for complex portfolios. We are pleased to have completed our first transaction with SiriusPoint and to have developed a loss portfolio transfer that meets its specific requirements,” Brockman said.
SiriusPoint advances legacy portfolio exit strategy
For SiriusPoint, the transfer removes a portfolio of historical reinsurance exposures from its ongoing risk management responsibilities under the agreed LPT structure.
The Bermuda-headquartered specialty insurer and reinsurer has been working to simplify its business and strengthen its capital resources.
SiriusPoint CEO Scott Egan said the transaction would strengthen the company’s capital position and close the chapter on its legacy portfolio.
“This transaction marks another important step for SiriusPoint, further simplifying our business, strengthening our capital position, and closing the chapter on our legacy portfolio,” Egan said.
SiriusPoint provides property and casualty and accident and health insurance and reinsurance through operations in Bermuda, New York, London, Stockholm and other markets. Its underwriting and distribution activities also include partnerships with managing general agents (MGAs) and program administrators.
The completed LPT allows SiriusPoint to advance its portfolio simplification strategy while RiverStone assumes responsibility for the transferred legacy liabilities.
