American Financial Group (AFG) has entered into a definitive agreement to sell GAI Holding Bermuda and its subsidiaries – which comprise the legal entities that own Lloyd’s of London insurer Neon Underwriting – to private markets asset management firm RiverStone Holdings Limited.
AFG previously announced its plans to exit the Lloyd’s marketplace through the sale of Neon earlier this year.
Read more: Insurance group in Lloyd’s of London exit
At close of sale, AFG expects the release of all its funds at Lloyd’s, including release of the letters of credit and the collateral pledge facility that AFG guarantees in support of Neon’s funds at Lloyd’s.
The transaction is expected to close in the fourth quarter of 2020, subject to customary conditions, a release said.
“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 AFG co-CEO Carl H. Lindner III. “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 that RiverStone had worked closely with AFG to ensure that the latter’s “strategic objectives” were achieved through the transaction, and that RiverStone will ensure that Neon insureds “continue to receive the highest possible level of service.”