With the sale of BIL, Brit Group is now positioned to focus on its strategic objective of being a global speciality (re)insurer underwriting on its Lloyd’s platform, as Brit Global Specialty.
The transaction, which will require customary regulatory approvals, is expected to complete in the fourth quarter of 2012. As a result of the transaction, Brit Group will retain the liabilities and claims handling for certain business currently within BIL which relate to the Group’s ongoing core business now being written into Brit’s Lloyd’s syndicate 2987.
For the period to completion of this transaction, Brit Group is committed to maintaining capital levels in BIL equivalent to those held prior to this announcement, which support the rating of A- from A.M. Best and A from Fitch. As stated in previous communications Brit Group’s intention is to underwrite all current and future business into its Lloyd’s syndicate 2987 which benefits from Lloyd’s A rating from A.M. Best and A+ rating from Fitch and Standard & Poors.
Mark Cloutier, Group CEO, Brit Insurance, said:
“The sale of BIL is a significant milestone in our journey to restructure our capital base and to establish a leading position as a focused global specialty underwriter. We have undertaken a significant reorganisation of the group over the last year, and following the transfer of Brit’s UK regional business to QBE in April; this transaction allows us to focus on growing our core global specialty business through our Lloyd’s platform, as Brit Global Specialty.
Furthermore, we are pleased with the outcome of our restructuring efforts whereby through the combination of this transaction and the earlier QBE deal we have realised a meaningful premium to book value for BIL and our UK Division.
RiverStone, a member of the Fairfax group have built a strong franchise and have an excellent reputation for managing the run-off of (re)insurance companies responsibly, so I am confident that this is the right home for the legacy liabilities of the UK business.”