Specialized reinsurer / insurer Canopius Group has entered into a Loss Portfolio Transfer (LPT) agreement with RiverStone International, an inheritance and run-off specialist.
The arrangement covers discontinued lines of insurance underwritten by unions belonging to Canopius.
Under the agreement, RiverStone’s Syndicate 3500 indemnifies the reinsurer against potential losses on net liabilities valued at approximately $ 780 million.
Nick Betteridge, Chief Actuary of Canopius, said: “This LPT with RiverStone gives Canopius the finality of our discontinued lines, allowing us to focus on our core business and freeing up capital to reinvest in support of our future growth aspirations.
“With the current positive market environment, we believe this is the perfect time to continue investing and growing our business in 2022 and beyond. I would like to thank Gallagher Re for their professional handling of this transaction and we look forward to working with RiverStone on the transition of the business.
Luke Tanzer, CEO of RiverStone, said: “We are delighted to have completed this historic portfolio transaction with Canopius, which continues to build on our strong position in Lloyd’s.
“We look forward to working closely with Canopius during the transition phase and maintaining a high quality level of service for policyholders and claimants. “