FirstGroup has concluded a reinsurance deal to de-risk around $147m of Greyhound's legacy self-insurance reserves, and sold three Greyhound properties for around $32m.
As part of the Aberdeen-based transport group's sale of the US coach company in October, it retains pensions and insurance legacy liabilities, which are now being de-risked, alongside property holdings which can be monetised over time.
The reinsurance transaction with Randall & Quilter Investment indemnifies the group for these liabilities and any adverse developments on them up to a maximum of $275m. The liabilities covered remain on the balance sheet, but with an offsetting asset reflecting the risk transfer agreement.
