Eagle Star risks transferred to RiverStone
by Gill Montia
Story link: Eagle Star risks transferred to RiverStone
Zurich and RiverStone have signed an agreement that transfers the benefits and risks of Eagle Star’s remaining general insurance portfolio as at July 1st, 2012.
As a result, $273 million in undiscounted gross liabilities will transfer to RiverStone, predominantly US asbestos, pollution and health risks written from the mid-1940s to the mid-1980s.
The transaction will generate a pre-tax profit in 2012 and is expected to release $340 million of local capital within two years.
Eagle Star has been in run off since 2006 and the transaction form part of Zurich’s wider strategy to divest most of its non-core businesses and release $1.5 billion of capital by 2015.