Lloyd's insurer ArgoGlobal strikes £356m RITC to cut expenses, redeploy capital
Lloyd's insurer and member of Argo Group, ArgoGlobal, has agreed a reinsurance-to-close (RITC) deal with legacy specialist RiverStone, as part of the company's strategy to simplify the business, reduce expenses and streamline operations.
The deal will see RiverStone undertake an RITC of ArgoGlobal’s Syndicate 1200 for 2017 and prior years with net technical provisions of £356 million.
The transaction is expected to receive regulatory approval in the fourth quarter of 2020, with the RITC becoming effective on January 1, 2021.
Matt Harris, group head of international operations, ArgoGlobal said: “This is another important milestone in the company’s strategy to simplify the business, reduce expenses and streamline operations to ensure we are as efficient as possible. This transaction enables us to redeploy capital and create greater long-term value for our shareholders.”
Luke Tanzer, UK managing director of RiverStone, said: “We are pleased Argo has selected RiverStone as their partner for this transaction. We have worked closely with Argo to ensure their strategic objectives are achieved through this transaction, and we will ensure Argo’s insureds continue to receive the highest possible level of service.”
