MS Amlin-RiverStone’s £1.2bn deal largest third-party reinsurance-to-close executed in Lloyd’s market

Global re/insurer  MS Amlin has finalised a £1.2 billion legacy deal with run-off specialist  RiverStone International for its Syndicate 2001, marking the largest third-party reinsurance-to-close (RITC) transaction ever executed in the Lloyd’s market.

RiverStone has completed an agreement with MS Amlin Underwriting to provide MS Amlin Syndicate 2001 with a RITC of the 2018 and prior years of account, and a loss portfolio transfer (LPT) reinsurance of specific discontinued classes in the 2019 to 2021 years of account. The RITC portion will be a ‘split’ RITC as the 2018 and prior years of account have already been closed into MS Amlin’s 2020 year of account.

RiverStone will undertake the split RITC and LPT through its specialist legacy syndicate 3500. The RITC and LPT became effective on January 1, 2023, with net technical provisions of £1.2 billion.

David Rocke (pictured right), group head of M&A of RiverStone International, said: “We are delighted that MS Amlin has once again chosen RiverStone International as its partner in meeting its strategic aims. This transaction further reinforces the trust key counterparties in the market have in us. We will ensure that MS Amlin’s excellent reputation is maintained, and their insureds continue to receive the highest possible level of service.”

Andrew Carrier (pictured left), MS Amlin CEO, added: “I am delighted we have completed this landmark transaction, which includes the largest third-party RITC in Lloyd’s history. Through this transaction, we create the space to concentrate on our future strategy, reduce volatility, and better utilise our capital and resources. Transferring these legacy accounts to a trusted partner like RiverStone International, maintains our confidence in the support available from both our organisations to effectively service our clients’ historic claims, as well as their current and future needs. I would like to thank RiverStone International for their professionalism, rigour and collaborative approach to partnership, as well as Gallagher Re for their vital support throughout this process.”

James Mounty, global leader of customised & capital solutions at Gallagher Re, said: “Helping clients maximise their capital efficiency is what drives our team of retrospective solutions specialists, and we are pleased to have advised MS Amlin on this large and complex transaction. By devising innovative insurance restructuring solutions for clients’ legacy portfolios, we can help them redeploy capital and take advantage of trading conditions. The scale of this transaction also demonstrates that the value and benefits created by back-book optimisation are increasingly accepted and embraced by those at the forefront of our industry.”

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