AXA has started the process of transferring its historical disease liability book of business to (re)insurer, RiverStone –Insurance (UK) (“RiverStone”).
All UK, Channel Islands and Isle of Man employers’ liability and public liability policies issued by AXA prior to 1st January 2002 will transfer to RiverStone, while disease claims related to policies issued between the same date and 31st December 2014 will be reinsured by RiverStone.
This includes mesothelioma, noise induced hearing loss (NIHL) and other industrial related diseases covering reserves of c£600m.
The transfer will be completed as an insurance business transfer pursuant to Part VII of the Financial Services and Markets Act 2000 (“Part VII Transfer”) requiring High Court agreement and regulatory approvals and as such, the deal is expected to conclude during the next 12-18 months.
The transfer of the book of business, currently managed by AXA Liabilities Managers, reflects AXA’s priority towards effective capital management discipline.
This does not affect any other part of the AXA Liabilities Manager’s or AXA UK’s operations.
Amanda Blanc, Group CEO, AXA UK & Ireland, commented:
“Our decision to transfer the liability demonstrates AXA’s commitment to pro-actively manage its risks and focus on its core strategy and product set. RiverStone are an expert in this area and are well placed to manage this book of business going forward whilst ensuring the continued fair treatment of customers.”
Nick Bentley, President of the RiverStone Group said:
“RiverStone are delighted to be partnering with AXA on these transactions. We look forward to working collaboratively with AXA to ensure that their strategic objectives are achieved, and that their excellent reputation is maintained through adherence to our core principle of treating customers and other stakeholders fairly and with the utmost integrity.”