ArgoGlobal, the Lloyd’s insurer and member of Argo Group (NYSE: ARGO), today announced a reinsurance-to-close (RITC) transaction with legacy specialist RiverStone. Upon completion of the transaction, RiverStone will undertake an RITC of ArgoGlobal’s Syndicate 1200 for 2017 and prior years with net technical provisions of £356 million.
“This is another important milestone in the company’s strategy to simplify the business, reduce expenses and streamline operations to ensure we are as efficient as possible,” explains Matt Harris, Group Head of International Operations. “This transaction enables us to redeploy capital and create greater long-term value for our shareholders.”
The transaction is expected to receive regulatory approval in the fourth quarter of 2020, with the RITC becoming effective on January 1, 2021.
“We are pleased Argo has selected RiverStone as their partner for this transaction,” said Luke Tanzer, RiverStone’s UK Managing Director. “We have worked closely with Argo to ensure their strategic objectives are achieved through this transaction, and we will ensure Argo’s insureds continue to receive the highest possible level of service.”