David Rocke, group head of M&A of RiverStone International
17 February 2023Insurance

RiverStone secures $305m reinsurance layer after major MS Amlin deal

Legacy focused Lloyd’s specialist underwriter  RiverStone International has secured $305 million of multi-year collateralised reinsurance, with financing led by investment bank JP Morgan, on the heels of its major  £1.2 billion reinsurance-to-close (RITC) and loss portfolio transfer (LPT) deal with MS Amlin.

The innovative multi-year excess of loss corporate member reinsurance cover has been put in place to support the underwriting of a series of new Lloyd’s transactions effective from January 1, 2023, including the recently revealed deal with MS Amlin, which is the largest third-party RITC executed in the Lloyd’s market.

The $305 million reinsurance layer is underwritten by the newly created Aon White Rock cell company, Xenon IC, 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 collateralised 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.

Additionally, the structure 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.

Andy Creed, RiverStone International CFO, said: “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.

“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. 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, we have also extended the funding provided by other third-party capital providers, who continue to provide strong support to our growing business. Our capital management and funding position is now more resilient than ever.”

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