American Financial Group Agrees to Sell Run-Off Lloyd’s Insurer Neon to RiverStone

September 28, 2020

American Financial Group Inc. announced it has reached a definitive agreement to sell GAI Holding Bermuda and its subsidiaries, comprising the legal entities that own its Lloyd’s of London insurer, Neon, to RiverStone Holdings Ltd.

Upon closing of the sale, AFG expects release of all of its funds at Lloyd’s (FAL) including release of the letters of credit and collateral pledge facility that AFG guarantees in support of Neon’s FAL.

This transaction will complete AFG’s exit from the Lloyd’s of London insurance market — culminating a decision that was first announced in January 2020. AFG joined Lloyd’s in 2008 through an acquisition.

Related:
American Financial Group Decides to Exit Lloyd’s, Putting Neon into Run-Off

Financial details of the transaction were not disclosed. The deal is expected to close in the fourth quarter of 2020 after receiving the required regulatory approvals.

In accordance with generally accepted accounting principles, it is expected that AFG will record the sale in the third quarter. The sale is not expected to have a material impact on AFG’s ongoing results of operations. TigerRisk Capital Markets & Advisory acted as exclusive financial advisor to AFG.

“The sale of Neon finalizes AFG’s exit from the Lloyd’s market, following AFG’s decision to place this business into run-off effective in the fourth quarter of 2019,” said Carl H. Lindner III, AFG’s co-chief executive officer. “The exit allows us to provide continued focus on our other Specialty P&C businesses and enables us to redeploy capital, increase earnings and returns, and create long-term value for our shareholders.”

Luke Tanzer, RiverStone’s UK Managing director stated: “We are delighted that AFG has selected RiverStone as their partner for this transaction. We have worked closely and collaboratively with AFG to ensure that their strategic objectives are achieved through this transaction, and we will ensure that Neon insureds continue to receive the highest possible level of service.”

About American Financial Group, Inc.

American Financial Group is an insurance holding company, based in Cincinnati, Ohio, with assets of approximately $70 billion as of June 30, 2020. Through the operations of Great American Insurance Group, AFG is engaged primarily in property and casualty insurance, focusing on specialized commercial products for businesses

About RiverStone UK

With over 20 years of experience, RiverStone UK specializes in legacy insurance services, employing over 200 professionals in multiple locations across the UK.

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