RiverStone International has completed two significant loss portfolio transfer (LPT) reinsurance deals, one marking its entry into the insurance-linked securities (ILS) market. The Bermuda-based legacy specialist reinsured portfolios linked to funds managed by Leadenhall Capital Partners, a London investment manager. This is RiverStone’s first involvement in the ILS sector, according to its group M&A head, and is seen as a step towards offering more tailored legacy solutions.
The second deal finalises several reinsurance transactions with QBE Insurance Group, covering about US$1.6 billion in reserves for North American middle market and workers’ compensation portfolios, as well as European liability books. RiverStone’s group CEO said the agreements show its ability to deliver complex legacy solutions at scale and strengthen its long-term partnership with QBE.
For insurers and reinsurers, RiverStone’s move into ILS and the scale of the QBE transfer may broaden the tools available for managing legacy liabilities. The deals may prompt other carriers to consider similar transactions as they seek capital relief and certainty over old exposures.
