Wiktor Wise
Electric Insurance Company, a Massachusetts-domiciled insurer, was bought by RiverStone International Holdings, Inc. in 2024. The acquisition was part of a major restructuring by Electric Insurance's previous owner, General Electric (GE), which decided to exit the insurance business and focus on aviation, energy, and healthcare. RiverStone International specializes in acquiring and reinsuring legacy and discontinued businesses, and the purchase of Electric Insurance provided it with expanded capabilities and resources to pursue additional opportunities in North America.
| Characteristics | Values |
|---|---|
| Date of acquisition | 3 June 2024 |
| Buyer | RiverStone International |
| Seller | General Electric (GE) |
| Sale price | $333 million |
| Reason for sale | GE's corporate restructuring into three separate public companies |
| RiverStone's speciality | Acquiring and reinsuring legacy and discontinued businesses |
| Electric Insurance's location | Beverly, Massachusetts |
| Electric Insurance's subsidiaries | Elm Insurance Company and Electric Insurance Agency LLC |
| Electric Insurance's licences | All 50 US states, the District of Columbia, Puerto Rico, and Canada |
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What You'll Learn
- Electric Insurance Company was sold by General Electric (GE) for $333 million
- RiverStone International acquired Electric Insurance Company
- Electric Insurance Company is domiciled in Massachusetts
- RiverStone specialises in acquiring and reinsuring discontinued businesses
- Electric Insurance Company has two subsidiaries
Electric Insurance Company was sold by General Electric (GE) for $333 million
The Electric Insurance Company, formerly a subsidiary of General Electric (GE), was recently acquired by RiverStone International ("RiverStone") for $333 million. This sale is part of GE's larger corporate restructuring plan, which involves transforming the conglomerate into three separate public companies focused on aviation, energy, and healthcare.
RiverStone, a leading provider of legacy solutions in the Lloyd's market, now gains access to Electric Insurance Company's licenses across all 50 US states, as well as Washington, D.C., Puerto Rico, and Canada. This acquisition expands RiverStone's presence in North America and aligns with its strategy to grow its global footprint.
Electric Insurance Company, domiciled in Massachusetts, has a long history in the insurance industry, dating back over 50 years. The company offers a range of insurance products, including auto, home, and excess liability coverage for individuals and families. It also has a presence in the commercial insurance market, providing coverage for businesses.
As part of the sale, RiverStone will manage Electric's legacy liability portfolios, including its personal and commercial lines. RiverStone intends to retain sufficient staffing levels to service the runoff of these legacy businesses. Additionally, Plymouth Rock Assurance, a Massachusetts-based insurer, will gain renewal rights for Electric's personal lines policies, providing continuity for impacted policyholders.
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RiverStone International acquired Electric Insurance Company
RiverStone International has acquired Electric Insurance Company, a Massachusetts-domiciled insurer, for $333 million. Electric Insurance Company is licensed to operate in all 50 US states, as well as Washington, D.C., Puerto Rico, and Canada. The company has been a wholly-owned subsidiary of General Electric (GE) and has primarily served GE employees, retirees, and commercial clients.
The acquisition is a part of GE's restructuring plan, which involves transforming the conglomerate into three public companies focused on aviation, energy, and healthcare. GE Healthcare was spun off in January 2023, and the remaining businesses will be split into separate energy and aviation entities in 2024.
RiverStone International, the largest provider of legacy solutions in the Lloyd's market, will manage Electric's legacy liability portfolios. However, it will withdraw from personal lines in all states. The acquisition expands RiverStone's presence in North America and aligns with its goal of becoming the leading global legacy provider.
As part of the transaction, Electric Insurance has also granted renewal rights for its personal lines policies to Plymouth Rock Assurance, a Massachusetts-based insurer. This agreement includes a multi-state renewal rights transaction, allowing eligible policyholders to transition seamlessly to Plymouth Rock or other carriers.
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Electric Insurance Company is domiciled in Massachusetts
The Electric Insurance Company is domiciled in the Commonwealth of Massachusetts, with its principal place of business at 75 Sam Fonzo Drive, Beverly, Massachusetts. The company is a licensed property/casualty insurer in all 50 states of the US, as well as the District of Columbia, Puerto Rico, and Canada.
The Electric Insurance Company was previously a wholly-owned subsidiary of General Electric (GE), which decided to sell the company for $333 million as part of a restructuring plan. This plan, initiated in 2021, involved GE transforming into three separate public companies focused on aviation, energy, and healthcare.
In 2024, GE exited the insurance business by selling the Electric Insurance Company to RiverStone International, a company that specialises in acquiring and reinsuring discontinued businesses. RiverStone International intends to manage Electric's legacy liability portfolios, including commercial insurance and personal lines insurance, which were previously offered primarily to GE employees and retirees.
As a result of the acquisition, the Electric Insurance Company is subject to a name change and will be known as RiverStone International Insurance, Inc. The Electric Insurance Company's subsidiary, Electric Insurance Agency, LLC, will continue to operate under its existing name in the state of California and New Jersey.
The Electric Insurance Company's withdrawal plan from Massachusetts includes a multi-state renewal rights transaction agreement with Plymouth Rock Assurance, a Massachusetts-based insurer. This agreement provides Electric's Massachusetts policyholders with quality replacement options for their company policies, ensuring a seamless transition process.
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RiverStone specialises in acquiring and reinsuring discontinued businesses
RiverStone International, a leading acquirer and reinsurer of discontinued insurance businesses, has acquired Electric Insurance Company from General Electric (GE) for $333 million. The acquisition is part of GE's corporate restructuring, which involves transforming the conglomerate into three stand-alone public companies focused on aviation, energy, and healthcare.
RiverStone, a specialist in managing discontinued insurance operations, will take over Electric's legacy liability portfolios. Electric Insurance, domiciled in Beverly, Massachusetts, has been writing commercial insurance, including workers' compensation, auto, general, and product liability exclusively for GE. It also provides personal lines insurance, including auto, home, yacht, and personal excess liability, primarily for GE employees, retirees, and alumni.
With this acquisition, RiverStone gains a platform to pursue additional legacy acquisitions in North America. RiverStone has been active in the Lloyd's legacy market and has transacted various deals, including insurance and reinsurance portfolio transfers and company purchases. Since 2010, RiverStone has acquired more than $14.5 billion in liabilities, with around $6.8 billion in total liabilities.
RiverStone's acquisition of Electric Insurance demonstrates its expertise in the field of acquiring and reinsuring discontinued businesses. The company's ability to provide creative solutions, flexibility, and collateralised security for reinsurance transactions has established its reputation as a leading player in the industry. RiverStone's focus on managing legacy portfolios and providing finality solutions positions it as a trusted partner for companies seeking to exit the insurance business or restructure their operations.
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Electric Insurance Company has two subsidiaries
Electric Insurance Company has been acquired by RiverStone International, a leading provider of legacy solutions in the Lloyd's market. The acquisition, finalised in June 2024, is a significant milestone in RiverStone's expansion strategy, providing them with operational capabilities to further North American opportunities.
The Electric Insurance Company, domiciled in Massachusetts, is licensed across all 50 US states, the District of Columbia, Puerto Rico, and Canada. It was previously a subsidiary of General Electric (GE), which decided to sell the company for $333 million as part of a restructuring plan to focus on aviation, energy, and healthcare.
RiverStone International now gains access to Electric Insurance Company's two subsidiaries: Elm Insurance Company and Electric Insurance Agency LLC. Elm Insurance Company, formed by GE in 1983, provided Electric Insurance Company with management, accounting, and other services. Electric Insurance Agency LLC, a wholly owned subsidiary of Electric Insurance Company, is based in Beverly, Massachusetts, and offers insurance in California and New Jersey.
The acquisition by RiverStone International includes a multi-state renewal rights transaction agreement with Plymouth Rock Assurance, a Massachusetts-based insurer. This agreement grants Plymouth Rock Assurance the renewal rights for Electric's personal lines policies, including auto, home, and personal liability. RiverStone will manage Electric's legacy liability portfolios but will withdraw from personal lines in all states.
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Frequently asked questions
RiverStone International, the largest provider of legacy solutions in the Lloyd’s market, bought Electric Insurance Company for $333 million.
RiverStone International specializes in acquiring and reinsuring discontinued insurance businesses. The acquisition of Electric Insurance Company is part of the company's goal to become the leading global legacy provider and expand its footprint globally.
Electric Insurance Company will change its name to RiverStone International Insurance, Inc. Electric Insurance Agency, LLC, a wholly-owned subsidiary of Electric Insurance Company, will retain its name but will operate under RiverStone International.
