"Ruxley in landmark reinsurance-funded acquisition: Run-off purchaser Ruxley Ventures is expected to outline a pioneering financing technique at a business transfer court hearing this month"

06 October 2003 (Front Page Support)

INSURANCE DAY

Press Coverage:
Ruxley takes whole of share capital of Aviation & General

RUN-off firm Ruxley Ventures has acquired the whole share capital of Aviation & General Insurance (A&G) and acquired the remaining 50 percent of the aviation pool that A&G used to underwrite its business. Ruxley, which is owned by Ruxley Investments and the Lloyd's managing agency Spectrum, has refused to be drawn on the deal.

Archived Press Coverage

(Oct 2007) Ruxley in landmark reinsurance-funded acquisition(Apr 2007) Ruxley in Generali run-off talks(Autumn 2006) Part VII business transfers - adding flexibility to the run-off equation(Spring 2006) Why we need a scheme monitor(Spring 2006) BAIC and after(Feb 2006) Solvent Schemes of Arrangement Conference(Nov 2005) Scheming for solvency(Oct 2005) A wake-up call(Sept 2005) Time To Wake Up(Sept 2005) Free Audio Conference: Rating the Raters(Aug/Sept 2005) Air Your Views(Aug 2005) Ruling could curtail solvent runoff schemes(March 2005) Tackling The Pools(Spring 2005) Selling like hot cakes(Spring 2005) The scheming solution(28/02/05) Influx of capital can impact premiums(Feb 05) Bringing finality to underwriting pools(Winter 04) Dangerous waters(04/11/04) Solvent schemes offer real boost(01/09/04) Buying Run-off(05/07/04) Run-off moves to another level(03/02/04) Run-off on a positive note(2004) 2003 A year of innovation(Winter 03) Ruxley buys Aviation & General(06/10/03) Ruxley takes whole of A&G(04/07/03) End of asbestos saga?(03/07/03) Ruxley closes APH book(Summer 03) Vulture Culture?

Ruxley in the press

A&G has been in run-off since 1993 and it is highly likely that the company will use a similar arrangement to that undertaken following its acquisition of City General, which it acquired in December 2001.

Ruxley has its own policyholder finality programme, a scheme of arrangement it used to close the run-off of City General?s asbestos pollution and health book within a year of its acquisition.

A&G began underwriting aviation business in 1935, and channelled its underwriting via an aviation pool from 1983, where it had a 50% stake.

Pearl Assurance and Prudential, the other two members of the pool, have agreed to transfer their portion to A&G, which was a key driver in the deal.

While the two sides refused to put a cost on the acquisition, Ruxley Ventures invested the equity for the purchase and senior debt was provided by the Royal Bank of Scotland.

In its 2002 accounts A&G reported it has a shareholders? equity of ?20.6m ($33m) with gross insurance reserves of ?12.7m.

Its major shareholder was French insurer Axa, with a 36.2% stake, with Norwich Union, Pearl Assurance and Prudential all holding 12% stakes. Royal & SunAlliance also held a 10% stake in the company.

Ruxley managing director John Winter said: "The A&G deal is another significant step forward for Ruxley, continuing its drive to bring genuine finality solutions to the London and international markets."

It is believed that the company will now undergo a solvent run-off and that Ruxley will use its programme to fast-track the claims.