Neon announced it has entered into a reinsurance to close (RITC) agreement for Syndicate 2468’s 2015 and prior years of account.
The agreement was formed with StarStone, a global specialty insurer and subsidiary of Enstar Group Ltd. The transaction provides Neon with finality on its legacy Marketform business, Neon said.
Subject to formal regulatory approval, the RITC will be effective as of Dec. 31, 2017 and is expected to complete in the first quarter of 2018. In the Lloyd’s market, a RITC transfers the responsibility for discharging all of the liabilities that attach to the transferred year of account, plus the right to any income due to the closing year of account in return for a premium.
Neon will recognize a reserve release at the effective date of the transaction.
Neon said it has a strong existing working relationship with StarStone and this latest RITC transaction follows a similar one executed last year, which covered liabilities relating to Syndicate 2468’s 2007 and prior years of account.
“This transaction provides an important conclusion for Neon, giving us a clean break from any uncertainty associated with our legacy portfolio and allowing us to continue focusing our energy on building an exciting future,” said Ian Martin, managing director at Neon.
“We are very pleased that Neon has secured agreement to close the 2008-2015 years of account with StarStone, following a competitive process,” said Jeff Consolino, executive vice president and chief financial officer at American Financial Group and chairman of Neon Capital Ltd.
“The transaction represents another significant accomplishment for the Neon team, provides an attractive result for Syndicate 2468’s capital providers and eliminates the distraction of the legacy business as Neon executes on its business plan,” he added.
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