Canopius, a global specialty (re)insurer, has recently announced the completion of a Loss Portfolio Transfer (LPT) agreement with Riverstone Holdings LLC, a leading acquirer of insurance and reinsurance run-off portfolios. This deal involves the transfer of all legacy non-life insurance and reinsurance business written by Riverstone to Canopius.
The completion of this agreement marks a significant step for both Canopius and Riverstone, as it allows them to focus on their core businesses and optimise their capital and resources. Let’s take a closer look at what this deal entails.
What is a Loss Portfolio Transfer (LPT)?
An LPT is a transaction where an insurer transfers its entire portfolio of loss reserves to a reinsurer or another insurer. In this case, Riverstone has transferred all of its legacy non-life insurance and reinsurance business to Canopius. This allows Riverstone to focus on its core businesses and free up its capital and resources.
Canopius’ Acquisition of Riverstone’s Legacy Portfolio
Canopius has acquired all of Riverstone’s legacy non-life insurance and reinsurance business through this LPT agreement. This includes all liabilities, reserves, and assets related to the transferred business. Canopius will be responsible for all future payments of claims arising from the transferred business, and Riverstone will be released from all obligations related to this business.
The Benefits of the LPT Agreement
This agreement offers significant benefits to both Canopius and Riverstone. For Canopius, it allows the company to expand its book of business and acquire a new portfolio of legacy business. For Riverstone, it frees up its capital and resources, allowing the company to focus on its core businesses.
In addition to these benefits, the LPT agreement also provides certainty to policyholders and other stakeholders. The transfer of liabilities and reserves ensures that policyholders will continue to receive coverage for their claims, and that Riverstone’s financial obligations will be met.
The completion of this LPT agreement between Canopius and Riverstone is a significant development for both companies. It allows them to focus on their core businesses and optimise their capital and resources. This deal also provides certainty to policyholders and other stakeholders, ensuring that they will continue to receive coverage for their claims.
As the insurance industry continues to evolve, we can expect to see more deals like this as companies look for ways to optimise their businesses and improve their bottom lines. For now, the completion of this agreement is a positive development for both Canopius and Riverstone, and we can expect to see the benefits of this deal for years to come.