AFG reaches agreement to exit Lloyd's of London insurance market

Written by Michael Griffiths

28/09/2020

American Financial Group (AFG) has reached an agreement to sell GAI Holding Bermuda and its subsidiaries, which comprise the legal entities that own its Lloyd’s of London insurer, Neon, to RiverStone Holdings Limited.

Expected to close in the fourth quarter of 2020, the transaction will complete AFG’s exit from the Lloyd’s of London insurance market.

The deal is still subject to customary conditions which includes the receipt of required regulatory approvals.

AFG stated that in accordance with generally accepted accounting principles, it is expected that the group will record the sale in the third quarter. The group also stated that the sale is not expected to have a material impact on its ongoing results of operations.

AFG co-chief executive officer, Carl H. Lindner III, commented: “The sale of Neon finalises 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.

“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.”

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

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