Runoff Specialist RiverStone Buying Vermont Captive Insurer Western P&C

RiverStone, the U.S. insurance runoff specialist of the Fairfax insurance group, announced a tentative agreement to acquire Western Property & Casualty Insurance Co. to be effective this month.

The shareholders of Western P&C will enter into a stock purchase agreement with Fairfax.

The Vermont Department of Financial Regulation has approved the acquisition.

Western P&C was formed in Vermont to support a group of companies —including companies engaged in energy production —to handle their automobile liability, general liability and workers’ compensation exposures, on a deductible reimbursement basis.

Matt Kunish, chief business development officer, noted this is RiverStone’s first venture into the Vermont captive community.

The RiverStone Group is a group of insurance, reinsurance, and service companies specializing in the acquisition and management of legacy business and captive insurance liabilities.

Western P&C was incorporated in Vermont in 2002 as a captive insurance company. Western P&C wrote deductible reimbursement coverage on policies issued for automobile liability, general liability and workers’ compensation exposures.