Fairfax-owned run-off manager Riverstone is to take over Scor-owned Channel Syndicate’s 2017 and prior years of account.
The full terms of the Guy Carpenter-brokered RITC have not been revealed, but it is understood to be in the region of £150mn of reserves.
When the deal was announced yesterday, the carrier said the deal will allow it to deploy its capital more efficiently “into value-creating segments of both existing and new targeted specialty lines.”
The Lloyd’s syndicate forms part of Scor’s Specialty Insurance platform that was launched last year, to focus on cyber, political & credit risk, environmental impairment liability, fine art and profitable areas of growth in property.
Syndicate 2015 produced a loss of £53.8mn in 2018, following a loss of £46.9mn in 2017. Its combined ratio stood at 126 percent in 2018, compared to 127 percent in 2017.
Towards the end of last year, Channel Syndicate ceased writing hull, cargo, accident and health as well as general and professional liability at Lloyd’s in order to gets its business plan across the line.
Last month, RiverStone purchased the Cayman-based captives GMPCI Insurance Company Ltd. (GMPCI) and Seaside Indemnity Alliance Company Ltd. (Seaside).
The deal came hot on the heels of it’s purchase of Rockville Risk Management and ER Quinn Company (Rockville), a third-party administrator and loss adjusting company based in New York, in July.
The Channel Syndicate marks the latest RITC transaction for RiverStone, having struck a deal with MS Amlin for a book of business related to Syndicate 3210.
In the past year, the RITC market witnessed a number of transactions. Last month, MS Amlin exited the aviation market and placed its current book into run-off.
Earlier this year, Enstar entered into reinsurance-to-close transactions with four of AmTrust’s Lloyd’s syndicates.
The legacy-to-live carrier took over the 2016 and prior years of account of Syndicates 1206, 1861, 2526 and 5820.
RiverStone could not be reached for comment.