American Financial Group (AFG) has reached a definitive agreement to sell GAI Holding Bermuda and its subsidiaries, which include the legal entities that own Lloyd’s of London insurer Neon, to RiverStone Holdings.
Upon completion of the sale, AFG expects to release all of its funds with Lloyd’s (FAL), including the release of the letters of credit and collateral guaranteed by AFG in support of Neon’s FAL.
This transaction, which is expected to close in the second quarter of 2020, will complete AFG’s exit from Lloyd’s of London’s insurance market. In accordance with generally accepted accounting principles, AFG is expected to post the sale in the third quarter.
Carl Lindner, Co-CEO of AFG, stated: “The sale of Neon completes AFG’s exit from Lloyd’s market after AFG decided to run this business into the runoff election with effect from the fourth quarter of 2019.”
He continued, “The exit allows us to continue to focus on our other specialty businesses in property and casualty insurance, reallocating capital, increasing profits and returns, and creating long-term value for our shareholders.”
Luke Tanzer, Managing Director of RiverStone UK, commented: “We are delighted that AFG has selected RiverStone as a partner for this transaction. We have worked closely and cooperatively with AFG to ensure that their strategic objectives are achieved through this transaction and we will ensure that those insured with Neon continue to receive the highest possible level of service.