RiverStone Holdings Limited Acquired Neon from AFG

RiverStone Holdings Limited (“RiverStone”) acquired GAI Holding Bermuda (“GAI”) Limited from AFG

• Sale included GAI’s subsidiaries comprising the legal entities that own AFG’s Lloyd’s of London insurer, Neon
• Subsidiary entities also comprised of four MGAs that GAI was in the process of exiting via sale or liquidation
• Upon closing of the sale, AFG expected the release of all of its Funds at Lloyd’s (“FAL”)
• This transaction completed AFG’s exit from the Lloyd’s of London insurance market
• Transaction closed on December 31st, 2020

Neon, founded initially as Marketform, was acquired by AFG in 2008 and rebranded as Neon in 2016

• Neon operated as a live Managing Agency until being put into run-off by AFG in January 2020
• On July 30, 2020 Neon had net claims reserves of £308m across casualty, reinsurance, marine, specialty and property

AFG is a U.S. based publicly traded insurance holding company

• Based in Cincinnati, Ohio with roots back to the founding of its flagship company, Great American Insurance Company
• Listed on the NYSE in 1978 and had a market cap of ~$5.7bn at the time of the transaction
• Engaged in property and casualty insurance, focusing on specialized commercial products, and in the sale of annuities
• Approximately $70bn assets as of June 30, 2020

The RiverStone Group is a leading insurance services provider specializing in the management of legacy and run-off insurance businesses and portfolios

• RiverStone forms part of Fairfax, a Canadian publicly traded financial holding company with a market cap of ~$7.7bn

TCMA acted as exclusive financial advisor to AFG; key transaction steps led by TCMA included:

• Running a broad auction process and preparation of marketing documentation
• Offering insight around key transaction terms and conditions
• Managing an organized and efficient due diligence process
• Assistance to AFG in negotiation of final transaction terms
• Providing objective advice and acting as a confidant to the seller throughout the process

TigerRisk’s LPT team also assisted in reviewing Neon’s reserves and helping to present them to the bidders