Skuld sells Lloyd’s Syndicate 1897 to Fairfax-owned RiverStone

Marine insurance provider Skuld has reached an agreement with Fairfax-owned insurance run-off management company RiverStone for the sale of its Lloyd’s Syndicate 1897, which was  placed into run-off in July 2019.

Skuld said the agreement followed a "competitive process" which began in autumn 2019. RiverStone as run-off provider for Syndicate 1897 from a number of bidders.

The transaction provides Skuld with economic and legal finality on the syndicate, which writes marine, energy, cargo and liability insurance.

Skuld will continue to underwrite all its hull and offshore energy business as Skuld Hull, the A-rated corporate platform of Skuld Assuranceforeningen, through Skuld UK in London and Skuld Marine Agency in Oslo.

The majority of liabilities within Skuld Syndicate 1897 relate to marine hull & machinery and energy business.

Willis Tower Watson Securities served as adviser to both parties in concluding the agreement.

Ståle Hansen, Skuld president and CEO, said: “Skuld remains resolutely focused on the best outcome for our clients and members. We have successfully transitioned our non-P&I clients from Syndicate 1897 to Skuld Hull, our company-market platform, and the sale of the Skuld Syndicate portfolio is a significant step in improving Skuld’s operational efficiency."

He added: “Professional support and honouring the solemn promise to our insureds were at the core of thinking throughout this process. RiverStone has an outstanding reputation in the legacy market and we have full confidence they will ensure the highest levels of service and claims handling to all of our clients.”

Luke Tanzer, managing director of RiverStone UK, commented: “We are delighted to announce this transaction with Skuld, an outstanding marine insurer with a market-leading reputation. RiverStone is a respected and longstanding legacy provider that delivers on the promise to insureds and will continue to do so for all policyholders of Syndicate 1897.

“The Skuld Management Team has been resolutely professional throughout this process and it has been a great pleasure to work with them. We have worked closely and collaboratively with the Skuld team to ensure that their strategic objectives are achieved through this transaction and our responsible management and adherence to our core principles, will ensure that their insureds continue to receive the highest possible level of service and that their excellent reputation is maintained.”