Carriers
RiverStone takes on $400M SiriusPoint run-off in first deal between the two firms
By Insurance Wire Staff, . Insurance Wire.
SiriusPoint has handed its remaining run-off reserves to RiverStone International through a loss portfolio transfer, or LPT, a structure in which one insurer pays another to take on a defined block of old liabilities. The deal, reported by Coverager, covers net liabilities of approximately $400 million and is the first transaction between the two firms. Marsh Re served as broker of record.
What changed
For SiriusPoint, the Bermuda-based reinsurer, the transfer closes out what the company has been calling its legacy portfolio. According to Insurance Business Magazine, the deal is expected to unlock more than $200 million of capital and add roughly 20 points to SiriusPoint's Bermuda Solvency Capital Requirement ratio, a regulatory measure of how much capital a Bermuda insurer holds relative to its risk. SiriusPoint will also fold its reinsurance operations into a newly created specialty property and casualty segment.
SiriusPoint chief executive Scott Egan said the deal "further simplifies the company's business, strengthens its capital position and closes the chapter on its legacy portfolio." He added: "We are pleased to be partnering with RiverStone, which has deep expertise in the legacy market."
What RiverStone gets
For RiverStone, this is another step in an active year. Reinsurance News described the transaction as continuing the firm's 2026 deal momentum, and noted that RiverStone developed a "bespoke solution" to meet SiriusPoint's specific requirements. The firm specializes in acquiring and reinsuring discontinued or legacy insurance books, and the SiriusPoint deal expands that footprint.
RiverStone is also planning to merge its Malta operation into its Irish entity, a move that remains subject to court and regulatory approvals.
Why it matters
LPTs have become a standard tool for carriers that want to clean up their balance sheets without waiting years for old claims to run off naturally. By transferring the liability to a specialist like RiverStone, SiriusPoint frees up capital it can redeploy into its ongoing business, in this case the new specialty property and casualty segment it is building.
The capital release figure, more than $200 million, is significant relative to the $400 million in liabilities transferred. It suggests SiriusPoint was holding reserves well above the amount RiverStone required to take on the risk, which is common in run-off transactions where the buyer prices in uncertainty about how old claims will ultimately develop.
What remains to be seen is how SiriusPoint's restructured business performs once the legacy drag is removed. The reinsurance-into-specialty pivot is a strategic bet, and the capital freed by this deal gives the company room to execute it. Whether the new segment can generate the returns that justify the restructuring is the question carriers and brokers working with SiriusPoint should be watching.
Sources
1. RiverStone assumes $400 million SiriusPoint legacy portfolio, coverager.com
2. RiverStone International continues 2026 deal momentum with $400m SiriusPoint LPT - Reinsurance News, reinsurancene.ws
3. SiriusPoint hands run-off to RiverStone and will fold reinsurance into new specialty P&C segment, insurancebusinessmag.com
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