December 2, 2020
Fairfax Announces Sale of RiverStone Europe to CVC
TORONTO, Dec. 02, 2020 (GLOBE NEWSWIRE) -- Fairfax Financial Holdings Limited (“Fairfax”) (TSX: FFH and FFH.U) announces that it has entered into a binding agreement with CVC Capital Partners (“CVC”) to sell all of its interests in RiverStone Europe to CVC Strategic Opportunities Fund II. OMERS, the pension plan for Ontario’s municipal employees, has also agreed to sell all of its interests in RiverStone Europe as part of the transaction.
The purchase price to be received by Fairfax on closing of the transaction is approximately US$750 million. Fairfax will also be entitled to receive up to US$235.7 million post-closing under a contingent value instrument. Luke Tanzer will remain the Managing Director of RiverStone Europe and Nick Bentley, the Chief Executive Officer of the RiverStone Group, will remain on the board of RiverStone Europe post-closing.
After closing, RiverStone Europe will also operate under the name RiverStone International and will seek to continue its successful track record of acquisitions and growth led by its existing management team.
“We are very pleased to enter into this transaction with CVC,” said Prem Watsa, Chairman and Chief Executive Officer of Fairfax. “RiverStone Europe is an industry leader in run-off insurance services, and CVC’s scale and vision will give RiverStone Europe, under the continued leadership of Luke and his management team, the opportunity to further grow the business. Nick and Luke are also fully supportive of this transaction, based on their strong beliefs that it was the best way for RiverStone Europe to continue to grow and pursue run-off transactions. We wish Luke and all of the employees at RiverStone Europe much success in the future. Fairfax remains committed to continuing to grow its other European businesses, including its Lloyd’s of London activities.”
“I am extremely happy to partner with CVC in this next chapter of our development,” said Luke Tanzer, Managing Director of RiverStone Europe. “This transaction will provide us with a runway for further growth as we continue to offer the most trusted and effective run-off solutions in the insurance market. We look forward to joining the CVC family and benefitting from their deep experience of financial services, global network and long term pool of capital.”
“As one of the largest global consolidators of non-life run-off insurance books, with a leading position in the UK and Lloyd’s market, embedded cash flows and a predictable financial profile, RiverStone Europe is ideally suited to CVC’s Strategic Opportunities platform, which specializes in backing established businesses in stable markets that have long term growth ambitions,” said Peter Rutland, Managing Partner and Head of Financial Services at CVC. “We have got to know RiverStone and Fairfax over many years, and are delighted to now have the opportunity to work with Luke Tanzer and his experienced team.”
The transaction is subject to customary closing conditions, including various regulatory approvals, and is expected to close in early 2021.
Fairfax is a holding company which, through its subsidiaries, is engaged in property and casualty insurance and reinsurance and the associated investment management.
CVC is making this acquisition through Strategic Opportunities Fund II, a vehicle designed to invest in high-quality businesses that are suited to longer hold investment horizons.
For further information contact:
Fairfax: John Varnell, Vice President, Corporate Development at (416) 367-4941
CVC: Carsten Huwendiek, Global Head, Marketing & Communications at +44 207 420 4200
Click here to download a complete copy of this press release from the Fairfax website.
June 2, 2020
Skuld agrees sale of Lloyd’s Syndicate 1897 to RiverStone
Oslo and London: 2 June 2020 - Skuld, a leading marine insurance provider, today announces that it has reached an agreement with The RiverStone Group ("RiverStone") for the sale of its Lloyd’s Syndicate 1897, which was placed into run-off in July 2019. The transaction is subject to regulatory approval.
Following a competitive process which began in autumn 2019, Skuld selected RiverStone as run-off provider for Syndicate 1897 from a number of bidders. Once the transfer of the management of corporate members to RiverStone is complete, Skuld will achieve economic and legal finality on the syndicate.
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.
"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, added: "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."
March 23, 2020
RiverStone COVID-19 update on 23 March, 2020
As we continue to navigate through this unprecedented time, we want to share some of the steps that we are taking to maintain business continuity and the support of our clients, business partners and teams across the U.K and U.S.
Last week saw the closure of all our U.K and U.S offices and the activation of our business continuity plans.
We have invested in better communication platforms and our ability to work remotely, but not in isolation with regular team calls via both telephone and video taking place.
Our response plan
We designated various task forces both in the U.K. and the U.S. to ensure we continue to provide seamless operations and first-class service.
We established a support network to ensure our employees have access to the right services to help them navigate this difficult time and to look after their mental well-being.
We are incredibly proud of everyone's efforts in keeping the company running seamlessly, delivering on our promises and the tremendous team spirit demonstrated by all.
We remain confident in our ability to continue to operate remotely, keeping open communications with all our clients, business partners and teams across the U.K and U.S and would like to thank everyone for their outstanding efforts.
March 14, 2020
RiverStone COVID-19 update
In view of the continued disruption caused by the COVID-19 coronavirus outbreak, please be rest assured that our priority is to continue to provide the first-class client service to which you’ve become accustomed, while protecting the health and safety of our team and their friends and families.
Accordingly, we have taken the decision to close all of our offices across the U.K. and U.S.
We are committed to minimising any disruption. All key personal and functions will operate remotely, accessing systems that ensure the confidentiality, integrity and availability of email, documents and servicing.
We are completely confident in our ability to seamlessly maintain operations and will continue to monitor the situation closely and review all our procedures accordingly.
February 26, 2020
Part VII Transfer of Japanese Reinsurance Portfolios to RiverStone
RiverStone is pleased to announce that, with effect from 31 January 2020, a portfolio of reinsurance business has been transferred from the UK branch of Aioi Nissay Dowa Insurance Company, Ltd (“ADI”) to RiverStone Insurance (UK) Limited under Part VII of the Financial Services and Markets Act 2000.
This transfer provides ADI with legal and economic finality in respect of the transferred portfolio and enables ADI to focus its resources on its core business.
For further information please contact:
RiverStone Insurance (UK) Limited
February 11, 2020
RiverStone Completes RITC Transaction With The Channel Syndicate
10 February 2020 – RiverStone has completed its RITC transaction with The Channel Syndicate, SCOR Specialty’s Lloyd’s arm. The transaction is effective from 1 January 2020, and covers the 2017 and prior years of account of Syndicate 2015. RiverStone and Channel are working closely together to ensure the continuity of their excellent service to all stakeholders.
“We are delighted that Channel has chosen us to help deliver their strategic aims,” said Luke Tanzer, Managing Director of RiverStone UK. “This transaction will enable Channel to concentrate on their ongoing core business safe in the knowledge that their reputation will be protected by RiverStone’s commitment and focus on the delivery of excellence in the management of legacy business.”
RiverStone Managing Agency Limited and its service company, RiverStone Management Limited, will be managing the business with effect from 1 April 2020. Until this date, Channel will retain the day-to-day management of the portfolio on behalf of RiverStone.
This transaction, brokered by Guy Carpenter, enables SCOR to deploy its capital efficiently and for RiverStone to bring its claims management expertise and focus onto this portfolio.
For further information please contact:
RiverStone Managing Agency Limited
December 20, 2019
OMERS to invest in RiverStone UK
Fairfax Financial Holdings Limited (“Fairfax”) (TSX: FFH and FFH.U) and OMERS, the pension plan for Ontario’s municipal employees, are pleased to announce that they have entered into an agreement pursuant to which OMERS will acquire a 40% interest in Fairfax’s UK run-off group, RiverStone UK.
The transaction gives RiverStone UK the joint operational expertise of Fairfax and OMERS and the flexibility to raise inexpensive capital, while enabling Fairfax to focus on significant premium growth in the ongoing insurance and reinsurance businesses. The investment provides RiverStone UK with additional flexibility to raise capital at historically low rates in Europe in order to opportunistically pursue UK run-off transactions. Luke Tanzer will remain CEO of RiverStone UK post-closing.
“We welcome OMERS’ investment in RiverStone UK and the opportunity it brings to continue to offer the most trusted and effective run-off solutions in the insurance market,” said Luke Tanzer, CEO of Riverstone UK.
“When Nick Bentley and Luke Tanzer expressed their desire to take steps to bring partners into the UK run-off business, OMERS was the natural choice given our past successes together,” said Prem Watsa, Chairman and CEO of Fairfax. “OMERS’ investment and their ability to work jointly with Luke and his team will provide RiverStone UK with the opportunity to prudently leverage the business and pursue opportunistic transactions.”
“The acquisition of RiverStone UK advances our strategy to make investments that can generate sustainable, stable income and growth,” said Ken Miner, Executive Vice President and Global Head of OMERS Capital Markets. “We are excited to work with Fairfax to maximize the value of this asset for our members.”
The cash purchase price for the RiverStone UK investment of at least US$560 million, subject to certain book value adjustments at closing, will result in Fairfax recording a gain of approximately US$280 million before tax (an increase in book value per basic share of Fairfax of approximately US$10 before tax on a pro forma basis).
Upon completion of the transaction, Fairfax will deconsolidate the UK run-off group and apply the equity method of accounting for its remaining interest. Fairfax may further monetize its remaining interest in UK run-off in the future although the company also retains the flexibility to repurchase its interest over time.
The transaction remains subject to regulatory approval and is expected to close in the first quarter of 2020.
December 6, 2019
RiverStone Featured in Cayman Captive Magazine
The 2020 edition of the annual Cayman Captive magazine by Captive International features an article written by Matt Kunish, RiverStone’s Chief Business Development Officer.
In the article, Matt talks about run-off as a strategic tool in the captive market. He explains reasons why captive owners can look to run-off as an exit strategy for their captives and how run-off providers like RiverStone can effectively help captive owners achieve their economic, legal and/or operational objectives.
Read the full article and view ad.
November 22, 2019
RiverStone was proud to sponsor the Broking Firm of the Year award
Mark Bannister, RiverStone Chief Operating Officer (far left) with the BPL Global team.
Congratulations to BPL Global, winners of the Broking Firm of the Year award at last night’s Insurance Day Awards 2019 ceremony.
Riverstone was proud to sponsor this award in memory of Brian Caudle, founder of Syndicate 780.
Brian was a long-term business partner and friend of RiverStone and its affiliates. He was awarded Insurance Day’s Lifetime Achievement Award at the Worldwide Reinsurance Awards in 2012 for his 60 years of service in the industry.
October 30, 2019
RiverStone announces the acquisition of two Cayman-based captives
RiverStone is pleased to announce the acquisition of Cayman-based captives, GMPCI Insurance Company, Ltd. ("GMPCI") and Seaside Indemnity Alliance Company, Ltd. ("Seaside").
Seaside was formed in 2013 for the purpose of assuming hospital and physician professional liabilities in Connecticut.
GMPCI was formed in 2005 to insure anaesthesiologists, certified registered nurse anaesthetists and registered nurses, primarily in Massachusetts.
"We are very excited to complete our first transactions in the captive space," said Matt Kunish, Chief Business Development Officer of RiverStone. "We were able to provide a solution as part of a larger transaction. With over 20 years' experience in the traditional insurance markets, we look forward to using our expertise in the captive space. In addition to providing insurance risk solutions, we also see an opportunity to use our skills to provide other services to the captive industry, including claim handling services."