Runoff player RiverStone, owned by Fairfax Financial Holdings, has taken control of the reinsurance portfolio from the UK branch of Aioi Nissay Dowa Insurance (ADI).
All reinsurance contracts in which ADI is the reinsurer, including those written by or on behalf of ADI in Japan, are affected.
The portfolio includes “contracts reinsuring marine, non-marine and aviation risks under treaty and facultative contracts written from the 1960’s up to 2015,” notes an official statement from RiverStone.
The transfer became effective on January 31 2020, and was conducted through a business transfer scheme under Part VII of the Financial Services and Markets Act 2000.
Aioi Nissay Dowa Insurance (UK), a subsidiary of Japanese giant MS&AD, set up its UK-based insurance company in September 2018. In 2017, ADI unveiled its plans to reorganise its European business to offer products and services in a stable manner following Brexit (the decision of the UK to leave the European Union which was eventually undertaken on January 31 this year), including a relocation of a London subsidiary to Luxembourg.
Figures from last March show that RiverStone holds almost US$7 billion in assets. Its backing by Fairfax Financial, and a recent US$560 million investment from OMERS, a Canadian pension fund, allows the firm to focus on utilising its resources to find the best opportunities in the run-off space.

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