RIIDAC financial statements

Registered number: 225221

RiverStone International Ireland dac

(formerly Catalina Insurance Ireland dac)

Directors' report and financial statements

Year ended 31 December 2023

Unit 44, Block 5

Northwood Court

Northwood Crescent

Northwood, Santry

Dublin, D09 EW63

RiverStone International Ireland dac

Contents

Page

Directors and other information 2

Directors’ report 3 - 5

Independent auditor’s report 6 - 13

Profit and loss account:

- Technical account - non-life insurance 14

- Non-technical account 15

Balance sheet 16 - 17

Statement of changes in equity 18

Notes to the financial statements 19 - 43

RiverStone International Ireland dac

Directors and other information

Board of Directors Solicitors

Allan Archer

William Fry

Andrew Creed

(British)

Appointed 2 February 2024

Fitzwilton House

Anthony Mason

(British)

(Independent)

Wilton Place

Brian Myles

Dublin 2

Luke Tanzer

(British)

Appointed 2 February 2024

Niamh O’Regan

(Independent)

Secretary and Registered Office Principal Bankers

Jane Bohan

HSBC Bank plc

Unit 44 Block 5

1 Grand Canal Square

Northwood Court

Grand Canal Harbour

Northwood Crescent

Dublin 2

Northwood

Santry

Brown Brothers Harriman & Co.

Dublin 9

185 Hudson Street, Suite 1150

Jersey City

NJ 07311-4003

Bank Mendes Gans N.V.

P.O. Box 198, 1000 AD Amsterdam

The Netherlands

Registered Number: 225221

Country of incorporation: Ireland

Auditor

Deloitte Ireland LLP

Chartered Accountants and Statutory Audit Firm

Deloitte & Touche House

29 Earlsfort Terrace

Dublin 2

Head of Actuarial Function

Ian Shires, FIA – appointed 2 February 2024

(previously Emma Burrows, FIA)

RiverStone International Ireland dac

Directors' report

The Directors of RiverStone International Ireland dac (the “Company”) present their annual report and audited financial

statements for the year ended 31 December 2023.

Statement of Directors’ responsibilities

The Directors are responsible for preparing the Directors’ Report and financial statements, in accordance with applicable law

and regulations.

Company law requires the Directors to prepare financial statements for each financial year. Under that law they have elected

to prepare the financial statements in accordance with FRS 102, the Financial Reporting Standard applicable in the UK and

Republic of Ireland and FRS 103 Insurance Contracts.

Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and

fair view of the assets, liabilities and financial position of the Company and of its profit or loss for that year. In preparing the

financial statements, the Directors are required to:

• select suitable accounting policies and then apply them consistently;

• make judgements and estimates that are reasonable and prudent;

• state whether applicable Accounting Standards have been followed, subject to any material departures disclosed and

explained in the financial statements; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will

continue in business.

The Directors are responsible for keeping adequate accounting records which disclose with reasonable accuracy at any time

the assets, liabilities, financial position and profit or loss of the Company and enable them to ensure that the financial

statements comply with the Companies Act 2014 and the European Union (Insurance Undertakings: Financial Statements)

Regulations 2015. They have general responsibility for taking such steps as are reasonably open to them to safeguard the assets

of the Company and to prevent and detect fraud and other irregularities. The Directors are also responsible for preparing a

Directors’ Report that complies with the requirements of the Companies Act 2014.

Accounting Records

The measures taken by the Directors to secure compliance with the Company’s obligations, under section 281 of the Companies

Act 2014, to keep adequate accounting records are the use of appropriate systems, procedures and controls, and the

employment of competent persons. The accounting records are kept at Unit 44 Block 5, Northwood Court, Northwood

Crescent, Northwood, Santry, Dublin 9.

Principal activity, business review and future developments

The Company is an insurance undertaking authorised by the Central Bank of Ireland, pursuant to the European Union

(Insurance and Reinsurance) Regulations 2015, to carry on non-life insurance business in classes 1 to 18 as defined in European

Union (Insurance and Reinsurance) Regulations 2015 (SI No. 485 of 2015), with the right to carry on business in such classes in

other EU jurisdictions on a freedom of services basis.

The Company previously underwrote creditor and personal lines business in Ireland, the UK and Italy. These classes of business

have been in run-off since July 2010. During 2015 the Company acquired a portfolio of insurance liabilities from Quinn

Insurance Ltd (under administration). The portfolio comprised business in the UK, Northern Ireland and Europe (Germany,

Belgium and the Netherlands). The business is predominately UK and Northern Ireland motor and professional indemnity and

some employer’s liability and public liability business. All classes of business transferred are now in run-off.

During 2018 the Company acquired a portfolio of insurance liabilities from Zurich Insurance Plc. The business consists of a

portfolio of insurance policies which provide cover for various types of losses arising in connection with the business and

healthcare operations of hospitals, clinics and other healthcare providers in Germany including as a result of medical

malpractice (“MedMal”). The business was written through specialist German MedMal brokers to German hospitals between

1946 and 2012.

RiverStone International Ireland dac

Directors' report (continued)

The Company made a loss after tax for the year ended 31 December 2023 of €9.2 million, compared to a loss after tax of €21.6

million in 2022. The loss for the year was mainly due to adverse development on the run-off of the claims on the Company’s

MedMal portfolio emerging during the year. No dividend was paid during the year (2022: Nil) and no final dividend has been

proposed. The Company’s Solvency II coverage ratio is 131% (2022: 147%).

The Company was acquired by RiverStone International Limited in February 2024 and is planning to run-off the remaining lines

of business as efficiently as possible. The Company may acquire and manage run-off portfolios in the future.

The Company has a documented reinsurance strategy, which is approved by the Board of Directors. Exposure and credit ratings

of individual reinsurers are monitored by the Company.

Principal business risks and uncertainties

The Company has a risk management function which reports to the Board of Directors. The Board of Directors have approved

the Company’s risk appetite statement and approves any variation in the risk appetite. The principal insurance risk the

Company faces under insurance contracts is that the actual claims and benefit payments, or the timing thereof, differ from

expectations. This is influenced by the frequency of claims, severity of claims, actual benefits paid and subsequent

development of long-term claims. The Company has significant exposure to MedMal insurance risk, which carries considerable

uncertainty in the estimate for technical provisions and therefore can result in a wide range of possible outcomes, above and

beyond that experienced in traditional non-life insurance products. The long-tail nature of the technical provisions for MedMal

products can result in larger actual to expected development of a claim and can be dependent on legislative initiatives and the

ability to settle a claim outside of a court of law.

Inflation has continued to impact the Company during 2023. Higher inflation, particularly over long periods, can impact both

the Company’s claims reserves and the value of its investment portfolio. The Company’s long-term claims are most at risk to

inflation and this risk was mitigated during the year by the intra-group reinsurance arrangement, however, the reinsurance

was commuted in February 2024. The Company’s reserving assumptions have been modified to reflect the current inflationary

environment.

The Company is also exposed to market risk on its investment portfolio. The Company has a documented investment strategy

approved by the Board of Directors which governs the Company’s exposure to market risk. Exposures are controlled by the

setting of investment limits in line with the Company’s risk appetite statement.

Further details on the risks to which the Company is exposed are included in notes 26 and 27 to the financial statements.

Directors

The names of the persons who were Directors at any time during the year ended 31 December 2023 are set out below:

Allan Archer

Paul Duffy

Resigned 20 January 2023

Anthony Mason (Independent)

Andrew Diaz-Matos

Resigned 2 February 2024

John McGlynn

Appointed 21 April 2023

Resigned 2 February 2024

Brian Myles

Niamh O’Regan (Independent)

In accordance with the Company’s Constitution, the Directors are not required to retire by rotation.

Directors’ and secretary’s interests

The Directors and secretary who held office at 31 December 2023 had no interests in the shares in, or debentures or loan stock

of the Company at any time during the year. The Directors and Secretary of the Company hold no disclosable interests in

accordance with section 260 (f) of the Companies Act 2014 and no disclosure is required under section 329 of the Companies

Act 2014.

RiverStone International Ireland dac

Directors' report (continued)

Central Bank of Ireland Corporate Governance Code

The Company is subject to the Corporate Governance Requirements for Insurance Undertakings (the “Corporate Governance

Requirements”) issued by the Central Bank of Ireland in November 2015 that came into effect on 1 January 2016. The Company

has complied with the Corporate Governance Requirements throughout 2023 and to the date of this report. The Company is

not required to comply with the additional requirements for major institutions.

The Directors have mandated a basis for effective risk management within the Company dictated by a clear system of

governance that covers all significant aspects of the business, provides an open forum for challenge, and allocates clear

responsibilities for both collective management committees and individuals. In addition, the Directors have established the

four key control functions required under the Corporate Governance Requirements; risk management, actuarial, compliance

and internal audit. These functions are responsible for providing oversight of, and challenge to, the business and for providing

assurance to the Board in relation to the Company’s control framework.

Going Concern

The Directors have undertaken a review of the financial performance of the Company. After reviewing the Company’s budget

and business plan, and including the results of stress and scenario testing from the most recent ORSA process, the Directors

have a reasonable expectation that the Company has adequate resources to continue in operational existence for the

foreseeable future. For this reason they continue to adopt the going concern basis in preparing the accounts.

Political donations

The Directors, on enquiry, have satisfied themselves that there were no political donations made during the year.

Post balance sheet events

On 2 February 2024, the Company was acquired by RiverStone International Limited, following no objection from the Central

Bank of Ireland, and subsequently changed its name from Catalina Insurance Ireland dac to RiverStone International Ireland

dac, effective from 13 February 2024. As part of the transaction, immediately prior to completion, the Company commuted

the intra-group reinsurance arrangement with Catalina General Insurance Ltd. and received a capital injection of €73.7 million.

Auditor

Deloitte Ireland LLP, Chartered Accountants, were first appointed statutory auditor on 11 September 2020 and pursuant to

section 383(2) of the Companies Act, 2014, will continue in office.

Relevant audit information

Each Director who was a Director of the Company at the time the report is approved confirms that, so far as the Director is

aware, there is no relevant audit information of which the Company’s statutory auditors are unaware; and the Director has

taken all the steps that he ought to have taken as a Director in order to make himself aware of any relevant audit information

and to establish that the Company’s statutory auditors are aware of that information.

On behalf of the Board

Brian Myles

Allan Archer

Director

28 March 2024

Continued on next page/

Deloitte Ireland LLP

Chartered Accountants &

Statutory Audit Firm

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF

RIVERSTONE INTERNATIONAL IRELAND DESIGNATED ACTIVITY COMPANY

Report on the audit of the financial statements

Opinion on the financial statements of RiverStone International Ireland DAC (the ‘company’)

In our opinion the financial statements:

 give a true and fair view of the assets, liabilities and financial position of the company as at 31 December 2023 and of the loss for

the financial year then ended; and

 have been properly prepared in accordance with the relevant financial reporting framework

and, in particular, with the

requirements of the Companies Act 2014.

The financial statements we have audited comprise:

 the Profit and Loss Account: Technical Account – Non-Life Insurance;

 the Profit and Loss Account: Non-Technical Account;

 the Balance Sheet;

 the Statement of Changes in Equity; and

 the related notes 1 to 34 including a summary of significant accounting policies as set out in note 1 & 2.

The relevant financial reporting framework that has been applied in their preparation is Companies Act 2014 and FRS 102 “The Financial

Reporting Standard applicable in the U.K and Republic of Ireland” and FRS 103 “ “Insurance Contracts” issued by the Financial Reporting

Council and promulgated by the Institute of Chartered Accountants in Ireland.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (Ireland) (ISAs (Ireland)) and applicable law. Our

responsibilities under those standards are described below in the “Auditor's responsibilities for the audit of the financial statements” section

of our report.

We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements

in Ireland, including the Ethical Standard issued by the Irish Auditing and Accounting Supervisory Authority (IAASA), as applied to public

interest entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Summary of our audit approach

Key audit matters

The key audit matter that we identified in the current year was:

 Valuation of Incurred But Not Reported (IBNR) loss reserves

Within this report, any new key audit matters are identified with and any key audit matters which are

the same as the prior year identified with .

Materiality

The materiality that we used in the current year was EUR 1m (2022:1.24m) which was determined on the

basis of approximately 3% of Shareholder’s Funds.

Scoping

We determined the scope of our audit by obtaining an understanding of the company and its

environment, including the identification of relevant controls. We designed our audit by determining

materiality and assessing the risks of material misstatement in the financial statements. As part of our risk

assessment, we assessed the control environment in place to the extent relevant to our audit. The risk of

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material misstatement that had the greatest effect on our audit is identified as the key audit matter in the

“Key Audit Matters” section of our report.

Significant changes in our

approach

There were no significant changes to our approach in the current financial year.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation

of the financial statements is appropriate.

Our evaluation of the directors’ assessment of the company’s ability to continue to adopt the going concern basis of accounting included:

 We obtained an understanding of the company’s process for assessing the appropriateness of the going concern determination;

 As part of that understanding, we obtained an understanding of the quarterly and annual process to determine Solvency II

regulatory capital and the calculation of the company’s solvency ratio. We obtained an understanding of management’s process

to complete the Own Risk and Solvency Assessment (‘ORSA’) report. We obtained an understanding of the annual budget and three

year business planning process;

 We obtained the directors’ Assessment of Going Concern and challenged the key assumptions used in determining the company’s

ability to continue as a going concern;

 We obtained the annual Solvency Financial Condition Report, the ORSA report 2023 and the Board approved 2024 budget and

considered whether the information was consistent with the going concern assessment and supported the going concern

conclusion;

 We performed a retrospective assessment of the current year performance and year-end position of the company including

profitability, loss ratios and solvency capital required against prior year plans and budgets; and

 We evaluated the adequacy of the relevant disclosures made in the financial statements.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually

or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from

when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in

our audit of the financial statements of the current financial year and include the most significant assessed risks of material misstatement

(whether or not due to fraud) we identified, including those which had the greatest effect on: the overall audit strategy, the allocation of

resources in the audit; and directing the efforts of the engagement team. These matters were addressed in the context of our audit of the

financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

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Valuation of Incurred But Not Reported (IBNR) loss reserves

Key audit matter

description

Total IBNR loss reserves as at 31 December 2023 amounted to EUR 89.7 million, included within gross claims

outstanding. The methodologies and assumptions used to estimate IBNR losses involves a significant degree of

judgement by management as there is less information available than with reported claims. Due to the time lags

between when a loss event occurs and when it is reported and ultimately settled, IBNR is calculated by deducting

incurred losses (i.e. paid losses and case reserves) from management's best estimate of ultimate losses.

We have deemed this a significant risk in our audit and a fraud risk. Key assumptions used in the determination

of ultimate losses, including initial expected loss ratios and loss development factors, involve significant

judgment and estimation. The estimation and measurement of claims provisions is a major determining factor

in the results and financial position of the company.

Refer to the accounting policy in note 1 and the disclosures in note 17 of the financial statements.

How the scope of our

audit responded to the

key audit matter

The procedures performed to address the key audit matter included the following:

 Evaluated the design, and determined the implementation the company’s relevant controls related to

each component of the reserving process. This includes controls over the extraction of data, the

actuarial calculation and review of gross claims outstanding within technical provisions, and the

recording to the general ledger, including the IT controls related to relevant application systems and

interfaces.

 With the assistance of our actuarial specialists as part of our team:

o We independently developed an estimate of the Medical Malpractice Non-Annuity reserve

class of business. We compared our estimates to those booked by the company, and

evaluated the differences;

o We evaluated and challenged the company’s methodologies against recognized actuarial

practices for the remaining classes. We also evaluated and challenged the assumptions used

by the company using our industry knowledge and experience and other analytical

procedures. Specifically we evaluated the assumptions around claim reserves related to

annuity and PPO payments which form a significant portion of overall claims; and

o We compared the results of the reserve study prepared by third party actuaries to

management’s best estimate and evaluated the differences.

 Evaluated the adequacy of the loss reserve disclosures in the financial statements

Our audit procedures relating to these matters were designed in the context of our audit of the financial statements as a whole, and not to

express an opinion on individual accounts or disclosures. Our opinion on the financial statements is not modified with respect to any of the

risks described above, and we do not express an opinion on these individual matters.

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Our application of materiality

We define materiality as the magnitude of misstatement in the financial statements that makes it probable that the economic decisions of

a reasonably knowledgeable person would be changed or influenced. We use materiality both in planning the scope of our audit work and

in evaluating the results of our work.

Based on our professional judgement, we determined materiality for the financial statements as a whole as follows:

Materiality

EUR 1m (2022: EUR 1.24m)

Basis for determining

materiality

Approximately 3% of Shareholder’s Funds

Rationale for the

benchmark applied

We considered various different benchmarks upon which to base materiality. It was concluded that the

primary focus for key users of the financial statements, including shareholders, insured entities and

regulators, is the capital strength of the company and that the Shareholder’s Funds benchmark is the most

appropriate metric for capital strength.

We set performance materiality at a level lower than materiality to reduce the probability that, in aggregate, uncorrected

and undetected misstatements exceed the materiality for the financial statements as a whole.

We set performance materiality at a level lower than materiality to reduce the probability that, in aggregate, uncorrected

and undetected misstatements exceed the materiality for the financial statements as a whole. Performance materiality was

set at 80% of materiality for the 2023 audit. In determining performance materiality, we considered the following factors:

 Considerations in relation to the effectiveness of the control environment and any fraud risk factors;

Shareholder's Funds

EUR 33.9m

Materiality

EUR 1m

Audit Committee

reporting threshold

EUR 50,000

Shareholder's Funds

Materiality

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 The history of misstatements either corrected or uncorrected; and

 Any major changes in the business that would affect our ability to forecast potential misstatements.

We agreed with the Board of Directors that we would report to them any audit differences in excess of EUR 50,000 as well as differences

below that threshold which, in our view, warranted reporting on qualitative grounds. We also report to the Board of Directors on disclosure

matters that we identified when assessing the overall presentation of the financial statements.

An overview of the scope of our audit

We determined the scope of our audit by obtaining an understanding of the company and its environment and assessing the risks of material

misstatement within the company. We designed our audit by determining materiality and assessing the risks of material misstatement in the

financial statements. The risks of material misstatement that had the greatest effect on our audit are identified as a key audit matter in the

table above.

The company benefits from certain support services offered by their Group. In establishing the overall scope of the audit, we determined

the type of work that needed to be performed by component auditors at group shared service locations for the purposes of our audit. We

used the work of the Deloitte member firm in Bermuda, operating under our instruction, in relation to the testing of investments. We had

regular interaction with these component teams including telephone meetings and review of certain working papers. This, together with the

additional procedures performed in Ireland gave us the evidence we needed to form our opinion on the financial statements as a whole.

Both the company’s staff and our audit team continued to work on a hybrid basis. Our audit approach considered the impact of remote

working on the company and the audit.

Other information

The other information comprises the information included in the Reports and Financial Statements, other than the financial statements and

our auditor’s report thereon. The directors are responsible for the other information contained within the Reports and Financial Statements.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our

report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with

the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material

inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial

statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a

material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Responsibilities of directors

As explained more fully in the Directors’ Responsibilities Statement the directors are responsible for the preparation of the financial

statements and for being satisfied that they give a true and fair view and otherwise comply with the Companies Act 2014, and for such

internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material

misstatement, whether due to fraud or error.

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In preparing the financial statements, the directors are responsible for assessing the company’s ability to continue as a going concern,

disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend

to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement,

whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance,

but is not a guarantee that an audit conducted in accordance with ISAs (Ireland) will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be

expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on IAASA’s website at:

https://iaasa.ie/publications/description-of-the-auditors-responsibilities-for-the-audit-of-the-financial-statements/. This description forms

part of our auditor’s report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our

responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our

procedures are capable of detecting irregularities, including fraud is detailed below.

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and

regulations, we considered the following:

 the nature of the industry and sector, control environment and business performance including the design of the company’s

remuneration policies, key drivers for directors’ remuneration, bonus levels and performance targets;

 results of our enquiries of management , internal audit and the audit committee about their own identification and assessment of

the risks of irregularities;

 any matters we identified having obtained and reviewed the company’s documentation of their policies and procedures relating

to:

o identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-

compliance;

o detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;

o the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;

 the matters discussed among the audit engagement team including significant component audit teams and relevant internal

specialists, including tax, IT and actuarial specialists regarding how and where fraud might occur in the financial statements and

any potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified

the greatest potential for fraud in the following areas ‘Valuation of Incurred but not reported Reserves’. In common with all audits under

ISAs (Ireland), we are also required to perform specific procedures to respond to the risk of management override.

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We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those

laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key

laws and regulations we considered in this context included the Irish Companies Act 2014 and the relevant financial reporting framework.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but

compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty. These included the company’s

compliance with its regulatory requirements as a regulated insurer by the Central Bank of Ireland. In particular, we considered the company’s

compliance with regulatory solvency requirements under the Solvency II Directive.

Audit response to risks identified

As a result of performing the above, we identified the ‘Valuation of Incurred But Not Reported (IBNR) loss reserves ’ as a key audit matter

related to the potential risk of fraud or non-compliance with laws and regulations. The key audit matters section of our report explains the

matter in more detail and also describes the specific procedures we performed in response to that key audit matter.

In addition to the above, our procedures to respond to risks identified included the following:

 reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of

relevant laws and regulations described as having a direct effect on the financial statements;

 enquiring of management, the audit committee and in-house legal counsel concerning actual and potential litigation and claims;

 performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material

misstatement due to fraud;

 reading minutes of meetings of those charged with governance, reviewing internal audit reports and reviewing correspondence

with Central Bank of Ireland.

 in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other

adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and

evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members including internal

specialists and significant component audit teams and remained alert to any indications of fraud or non-compliance with laws and regulations

throughout the audit.

Report on other legal and regulatory requirements

Opinion on other matters prescribed by the Companies Act 2014

Based solely on the work undertaken in the course of the audit, we report that:

 We have obtained all the information and explanations which we consider necessary for the purposes of our audit.

 In our opinion the accounting records of the company were sufficient to permit the financial statements to be readily and properly

audited.

 The financial statements are in agreement with the accounting records.

 In our opinion the information given in the directors’ report is consistent with the financial statements and the directors’ report has

been prepared in accordance with the Companies Act 2014.

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF

RIVERSTONE INTERNATIONAL IRELAND DESIGNATED ACTIVITY COMPANY

Matters on which we are required to report by exception

Based on the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified

material misstatements in the the directors’ report.

We have nothing to report in respect of the provisions in the Companies Act 2014 which require us to report to you if, in our opinion, the

disclosures of directors’ remuneration and transactions specified by law are not made.

Other matters which we are required to address

We were appointed by the Audit Committee on 11 September 2020 to audit the financial statements for the period end date 31 December

2020. The period of total uninterrupted engagement including previous renewals and reappointments of the firm is 4 years, covering the

years ended 31 December 2020 to 31 December 2023.

The non-audit services prohibited by IAASA’s Ethical Standard were not provided and we remained independent of the company in

conducting the audit.

Our audit opinion is consistent with the additional report to the audit committee we are required to provide in accordance with ISA (Ireland)

260.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Section 391 of the Companies Act 2014. Our audit work

has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s

report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the

company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Matthew Foley

For and on behalf of Deloitte Ireland LLP

Chartered Accountants and Statutory Audit Firm

Deloitte & Touche House, 29 Earlsfort Terrace, Dublin 2

05 April 2024

RiverStone International Ireland dac

Profit and loss account

Technical account – non-life insurance

for the year ended 31 December 2023

2023

2022

Notes

€000

Gross premiums written

(2)

Outward reinsurance premiums

Net premium written

Change in the gross provision for unearned premiums and

unexpired risk

Change in the provision for unearned premium and

unexpired risk, reinsurers’ share

Change in the net provision for unearned premium

Earned premiums, net of reinsurance

Allocated investment return transferred from the non-

technical account

1,608

(2,561)

Other technical income

(103)

Reinsurers’ share of other technical income

Other technical income, net of reinsurance

(36)

Total technical income

1,572

(2,531)

Claims incurred, net of reinsurance

Claims paid

- Gross amount

(32,445)

(37,858)

- Reinsurers’ share

22,468

25,763

Net claims paid

(9,977)

(12,095)

Change in the provision for claims

- Gross amount

11,666

5,293

- Reinsurers' share

(7,042)

(5,362)

Change in the net provision for claims

4,624

(69)

Claims incurred, net of reinsurance

(5,353)

(12,164)

Net operating expenses

(3,784)

(3,101)

Balance on the technical account

(7,565)

(17,796)

All the above amounts are derived from continuing activities.

RiverStone International Ireland dac

Profit and loss account (continued)

Non-technical account

for the year ended 31 December 2023

2023

2022

Notes

€000

Balance on the technical account

(7,565)

(17,796)

Investment income

- Income from participating interests – group undertakings

135

1,720

- Income from other investments

2,554

1,711

Net investment income

2,689

3,431

Losses on the realisation of investments

(1,145)

(682)

Unrealised gains/(losses) on investments

1,128

(6,146)

Investment charges

(123)

(855)

Allocated investment return transferred to the non-life insurance

business technical account

(1,608)

2,561

Foreign exchange losses

(2)

(203)

Interest expense

(2,610)

(1,906)

Loss on ordinary activities before tax

(9,236)

(21,596)

Tax on loss on ordinary activities

Loss for the year

(9,236)

(21,596)

All the above amounts are derived from continuing activities.

Statement of comprehensive income

for the year ended 31 December 2023

2023

2022

€'000

Loss for the year

(9,236)

(21,596)

Movement in fair value reserve

1,802

(3,963)

Total comprehensive income for the year

(7,434)

(25,559)

The notes on pages 19 to 43 form an integral part of the financial statements.

RiverStone International Ireland dac

Balance sheet

as at 31 December 2023

2023

2022

Notes

€000

ASSETS

Investments

Investments in group undertakings and participating

interests

18,674

Other financial investments

93,805

86,498

93,805

105,172

Reinsurers’ share of technical provisions

Claims outstanding

260,728

266,591

260,728

266,591

Debtors

Debtors arising out of direct insurance operations

13,479

13,391

Other debtors

193

1,228

13,672

14,619

Other assets

Tangible assets

Cash at bank and in hand

9,733

9,495

9,733

9,497

Prepayments and accrued income

Accrued interest and prepayments

527

768

527

768

Total assets

378,465

396,647

RiverStone International Ireland dac

Balance sheet (continued)

as at 31 December 2023

2023

2022

Notes

€000

LIABILITIES

Capital and reserves

Called up share capital – presented as equity

52,717

Capital Contribution

11,000

Fair value reserve

(2,304)

(4,106)

Retained earnings

(27,501)

(18,265)

Shareholder’s funds attributable to equity interests

33,912

41,346

Technical provisions

Claims outstanding

318,750

329,187

318,750

329,187

Creditors - amounts falling due within

one year

Creditors arising out of insurance operations

Other creditors

305

1,427

305

1,444

Creditors - amounts falling due greater than one year

Subordinated loan notes

24,056

23,787

24,056

23,787

Accruals and deferred income

Other accruals

1,442

883

1,442

883

Total liabilities

378,465

396,647

The notes on pages 19 to 43 form an integral part of the financial statements.

On behalf of the board

Brian Myles

Allan Archer

Director

28 March 2024

RiverStone International Ireland dac

Statement of changes in equity

as at 31 December 2023

Notes

Called-up

capital

€000

Capital

contribution

€000

Fair value

reserve

€000

Retained

earnings

€000

Total

€000

At 31 December 2021

52,717

11,000

(143)

3,331

66,905

Loss for the year

(21,596)

Other comprehensive income

(3,963)

At 31 December 2022

52,717

11,000

(4,106)

(18,265)

41,346

Loss for the year

(9,236)

Other comprehensive income

1,802

At 31 December 2023

52,717

11,000

(2,304)

(27,501)

33,912

RiverStone International Ireland dac

Notes to the financial statements

1 Significant Accounting policies

The following accounting policies have been applied consistently in dealing with items which are considered material in relation

to the Company’s financial statements.

1.1 Basis of accounting

The financial statements have been prepared under the historical cost convention, modified to include certain items at fair

value, and in accordance with Financial Reporting Standards (FRS) 102 The Financial Reporting Standard applicable in the UK

and Republic of Ireland and FRS 103 Insurance Contracts (FRS 102 and 103) issued by the Financial Reporting Council, and

promulgated for use in Ireland by Chartered Accountants Ireland. The Company is also subject to the requirements of the

Companies Acts 2014 and the European Union (Insurance Undertakings: Financial Statements) Regulations, 2015.

In accordance with FRS 103, the Company has applied existing accounting policies for insurance contracts.

Although the Company’s business is in run-off, as the Company intends to continue to operate as an insurance company for

the foreseeable future and has the ability to manage the current business lines, the Directors consider it appropriate to prepare

the financial statements on a going concern basis.

1.2 Foreign currencies

The presentation currency of the Company is Euro. The financial statements of the Company are presented in the currency of

the primary economic environment in which it operates (its functional currency).

Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rates ruling at the balance

sheet date and revenues, costs and non-monetary assets at the exchange rates ruling at the dates of the transactions. Profits

and losses arising from foreign currency translation and on settlement of amounts receivable and payable in foreign currencies

are dealt with through the profit and loss account.

1.3 Insurance classification

The Company’s contracts are classified at inception, for accounting purposes, as insurance contracts. A contract that is

classified as an insurance contract remains an insurance contract until all rights and obligations are extinguished or expire.

Insurance contracts are those contracts that transfer significant insurance risk, if and only if, an insured event could cause an

insurer to make significant additional claims and benefits payments in any scenario, excluding scenarios that lack commercial

substance. Such contracts may also transfer financial risk.

1.4 Revenue recognition

1.4.1 Premiums

Gross insurance premiums for non-life insurance business are reported as income over the term of the insurance contract

based on the proportion of risks borne during the accounting period. Written premiums on short term reinsurance contracts

are recognised as income when received. Written premiums on long term reinsurance contracts are recognised as earned over

the life of the underlying reinsurance policies. Premium refunds are accounted for in the year in which they arise.

Outward reinsurance premiums are accounted for in the same year as the premiums for the related direct insurance.

1.4.2 Unearned premiums

The provision for unearned premiums comprises the amount representing that part of gross premiums written which is

estimated to relate to unexpired terms of policies inforce at the balance sheet date, calculated on a time apportioned basis.

1.4.3 Investment return

Investment return consists of dividends, interest, movements in amortised cost on debt securities and other loans and

receivables, realised gains and losses, and unrealised gains and losses on fair value assets.

RiverStone International Ireland dac

Notes to the financial statements (continued)

1.4.4 Allocated investment return transferred from the non-technical account

A transfer of investment return is made from the non-technical account to the technical account of the estimated share of

investment income arising from investments and cash supporting the insurance technical provisions. This calculation is based

on the ratio of net technical provisions to shareholder's equity.

1.4.5 Dividend income

Dividend income from investments is recognised when the shareholder’s rights to receive payment have been established.

1.4.6 Realised gains and losses

The realised gain or loss on disposal of an investment is the difference between the proceeds received, net of transaction costs,

and its original cost or amortised cost as appropriate.

1.4.7 Unrealised gains and losses

Unrealised gains or losses represent the difference between the carrying value at the year end and the carrying value at the

previous year end or purchase value during the year, less the reversal of previously recognised unrealised gains and losses in

respect of disposals during the year.

1.5 Taxation

Tax on the profit for the year comprises current and deferred tax. Tax is recognised in the profit and loss account except to

the extent that it relates to items recognised directly in equity, in which case the related income tax is also recognised in equity.

Current tax is the expected tax payable on the taxable profit for the year, using tax rates enacted or substantially enacted at

the balance sheet date, and any adjustment to tax payable in respect of previous years.

Deferred tax is provided on timing differences which arise from the inclusion of income and expenses in tax assessments in

periods different from those in which they are recognised in the financial statements. The following timing differences are not

provided for: differences between accumulated depreciation and tax allowances for the cost of a fixed asset if and when all

conditions for retaining the tax allowances have been met; and differences relating to investments in subsidiaries and

associates to the extent that it is not probable that they will reverse in the foreseeable future and the Company is able to

control the reversal of the timing difference. Deferred tax is not recognised on permanent differences arising because certain

types of income or expense are non-taxable or are disallowable for tax or because certain tax charges or allowances are greater

or smaller than the corresponding income or expense.

Current tax assets and liabilities are offset only when there is a legally enforceable right to set off the amounts and the Company

intends either to settle on a net basis or to realize the asset and settle the liability simultaneously.

Deferred tax assets and liabilities are offset only if: a) the Company has a legally enforceable right to set off current tax assets

against current tax liabilities; and b) the deferred tax assets and deferred tax liabilities relate to income taxes levied by the

same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis, or to realize the

assets and settle the liabilities simultaneously, in each future year in which significant amounts of deferred tax liabilities or

assets are expected to be settled or recovered.

1.6 Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost or valuation, less accumulated depreciation. The charge for depreciation is calculated

to write down the cost or valuation of other tangible fixed assets to their estimated residual values by equal annual instalments

over their expected useful lives which are as follows:

Computer equipment 3 years

Fixtures & fittings 3 years

1.7 Employee retirement benefits

The Company operates a defined contribution plan. Payments to the plan are charged to the profit and loss account as an

expense as they fall due.

RiverStone International Ireland dac

Notes to the financial statements (continued)

1.8 Financial assets and liabilities

The Company’s investments are comprised of debt and equity investments, cash and cash equivalents, loans and receivables

and investment in associates and subsidiaries.

A financial asset not held at fair value through profit or loss is assessed at each reporting date to determine whether there is

objective evidence of impairment. A financial asset is impaired if there is objective evidence of impairment as a result of one

or more events that occurred after the initial recognition of the asset and that loss event had an impact on the estimated future

cash flows of that asset that can be measured reliably.

Objective evidence that a financial asset is impaired includes significant financial difficulty of the issuer or obligor, a breach of

contract, default or delinquency in interest or principal payments, restructuring of the amount due on terms that the Company

would not otherwise consider, indications that a borrower will enter bankruptcy or other financial reorganisation, or adverse

changes in the payment status of the borrower due to adverse national or local economic conditions or adverse changes in

industry conditions.

An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its

carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate.

Losses are recognised in the profit and loss account and reflected in an allowance against receivables. Interest on the impaired

asset continues to be recognised. An impairment loss in respect of a financial asset classified as available for sale will be

recognised in the profit and loss account.

If an event occurring after the impairment was recognised causes the amount of impairment loss to decrease, then the

decrease in impairment loss is reversed through the profit and loss account.

1.8.1 Recognition

Financial assets and liabilities are recognised when the Company becomes a party to the contractual provisions of the

instrument. Financial liabilities are classified according to the substance of the contractual arrangements entered into.

1.8.2 Initial measurement

All financial assets and liabilities are initially measured at transaction price, except for those financial assets classified as at fair

value through profit or loss or classified as available for sale, which are initially measured at fair value.

1.8.3 Subsequent measurement

With the exception of Subordinated loan notes and loans and receivables, debt instruments are measured at fair value,

classified as fair value through profit or loss or available for sale. Where instruments are classified as available for sale, changes

in fair value are recognised through other comprehensive income (fair value reserve). Fair value is determined based on

whether quoted prices are available for instruments such as corporate bonds and government gilts. The Subordinated loan is

valued at amortised cost using the effective interest rate method. The placement fees and directly attributable costs of issuing

the Subordinated loan have also been amortised. The Subordinated loan notes meet the definition of a Basic Financial

Instrument under FRS 102 as they meet the conditions in paragraph 11.9. The fair value has been approximated at the nominal

value/amortised cost. For instruments such as loans and receivables where fair value cannot be determined from active

markets, the fair value has been approximated at the nominal value/amortised cost. Equity instruments shall be measured at

fair value with changes in fair value recognised in the profit and loss account, if the shares are publicly traded or their fair value

can otherwise be measured reliably; and all other such investments shall be measured at cost less impairment. Investments

in group undertakings are measured at fair value with changes recognised in the profit and loss account.

Realised and unrealised gains and losses arising from changes in the fair value of investments are presented in the non-

technical profit and loss account in the year in which they arise. Interest income is recognised when earned. Investment

management and other related expenses are recognised when incurred.

1.8.4 Derecognition of financial assets and liabilities

Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset

expire or are settled, b) the Company transfers to another party substantially all of the risks and rewards of ownership of the

financial asset, or c) the Company, despite having retained some significant risks and rewards of ownership, has transferred

control of the asset to another party and the other party has the practical ability to sell the asset in its entirety to an unrelated

third party and is able to exercise that ability unilaterally and without needing to impose additional restrictions on the transfer.

RiverStone International Ireland dac

Notes to the financial statements (continued)

Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.

1.8.5 Fair value measurement

Fair value is the price for which the asset could be exchanged, a liability settled or an equity instrument granted could be

exchanged, between knowledgeable willing parties in an arm’s length transaction. The best evidence of fair value is a quoted

price for an identical asset in an active market. When quoted prices are unavailable, the price of a recent transaction for an

identical asset provides evidence of fair value as long as there has not been a significant change in economic circumstances or

a significant lapse of time since the transaction took place. If the market is not active and recent transactions of an identical

asset on their own are not a good estimate of fair value, the Company estimates the fair value by using a valuation technique.

See note 2 for further information on the Company’s valuation techniques.

1.8.6 Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and demand deposits, and other short-term highly liquid investments that

are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value.

1.8.7 Investments in group undertakings and participating interests

In the Company balance sheet, investments in group undertakings and participating interests are measured at fair value

through profit or loss.

The Company has complied with FRS 102.9.9 whereby a subsidiary shall be excluded from consolidation where the interest in

the subsidiary is held exclusively with a view to subsequent resale; and the subsidiary has not previously been consolidated in

the consolidated financial statements prepared in accordance with this FRS. The subsidiary was held as part of an investment

portfolio whose value to the Company is through its fair value as part of the investment portfolio and it was not previously

consolidated in the consolidated financial statements prepared in accordance with this FRS.

The Subsidiary excluded from consolidation is Propco (Swansea) Limited. See note 13 to the financial statements for further

information on the Company’s holdings in group undertakings and participating interests.

1.9 Derivative financial instruments

The Company uses derivative financial instruments to reduce exposure to foreign exchange risk movements. The Company

does not hold or issue derivative financial instruments for speculative purposes. Derivatives are initially recognised at fair

value at the date a derivative contract is entered into and are subsequently re-measured to their fair value at each reporting

date. The resulting gain or loss is recognised in profit or loss immediately.

1.10 Insurance contracts

1.10.1 Technical result

The technical result is determined on an annual basis whereby the incurred cost of claims, commission and related expenses

are charged against the earned portion of premiums, net of reinsurance.

1.10.2 Claims

Claims consists of claims paid to policyholders, changes in the valuation of the liabilities arising on policyholder contracts and

claims handling expenses, net of salvage and subrogation recoveries.

1.10.3 Acquisition costs

Commission costs consists of fees and commissions paid to brokers and are directly related to the acquisition of policies.

Reinsurance commissions receivable are deferred in the same way as acquisition costs. All other fee and commission income

is recognised as the services are provided.

1.10.4 Technical provision for outstanding claims

Provision for the liabilities of non-life insurance contracts is made for outstanding claims and settlement expenses incurred at

the balance sheet date including an estimate for the cost of claims incurred but not reported (IBNR) at that date. Included in

the provision is an estimate of the costs of handling the outstanding claims.

Full provision is made on an individual case basis for the estimated cost of claims notified but not settled by the balance sheet

date. In estimating the cost of claims notified but unpaid, the Company has regard to the claim circumstances as reported, any

information available from loss adjustors and/or other experts and information on the cost of settling claims with similar

RiverStone International Ireland dac

Notes to the financial statements (continued)

characteristics in previous years. The Company takes all reasonable steps to ensure that it has appropriate information

regarding its claims exposures. In addition, a provision for IBNR is also established. The estimation of IBNR claims is subject to

a greater degree of uncertainty than the estimation of the cost of settling claims already notified to the Company, where more

information about the claim event is available.

In calculating the estimated total cost of unpaid claims, the Company uses a variety of actuarial estimation techniques,

generally based upon statistical analyses of historic claims experience information available to the Company which assume

that the development pattern of current claims will be related to past experience. However, allowance is made for changes or

uncertainties which may create distortions in the underlying statistics or which might cause the cost of unsettled claims to

increase or reduce when compared with the cost of previously settled claims. Examples of such issues include operational

changes affecting the timing and adequacy of case reserving or settlements and also the impact of external factors from the

legal/judicial environment. Large claims impacting each relevant business class are projected in order to allow for the possible

distortion of the development and incidence of these large claims.

The final reserve selection is chosen based on the results of a range of methodologies used taking into account the

characteristics of each business class, the extent and development of each accident year and the length of ‘tail’ on the claims

involved. Whilst the directors consider that the gross provision for claims and the related reinsurance recoveries are fairly

stated on the basis of the information currently available to them, the ultimate liability may vary as a result of subsequent

information and events. In such circumstances, any differences between provisions and subsequent settlements are dealt with

in the technical accounts of later years.

Included in the provision is an estimate of the costs of handling the outstanding claims. The provision is based on projected

costs that have been allocated to each line of business.

On long-term liability claims, due to the long delay from when the claim was settled and when the final payment will be made,

the outstanding claims are discounted to take account of investment income receivable to the final payment date.

1.10.5 Provision for unexpired risk

A provision for unexpired risks is established where the expected value of claims and expenses attributable to the unexpired

periods of policies in force at the balance sheet date exceeds the unearned premium provision in relation to such policies, after

deduction of any deferred acquisition costs.

1.10.6 Provision for unearned premium

The provision for unearned premiums represents that part of written premiums, gross of commission payable to intermediaries

that is estimated to be earned in subsequent years. The change in the provision is recorded in the profit and loss account to

recognise revenue over the period of the risk.

1.11 Deferred acquisition costs

Acquisition costs comprise the expenses, both direct and indirect, of acquiring insurance policies written during the year.

Acquisition costs, which relate to a subsequent year are deferred and charged to the years in which the related premiums are

earned. Deferred acquisition costs represent the proportion of acquisition costs incurred, which corresponds to the proportion

of gross premiums written which are unearned at the balance sheet date.

1.12 Reinsurance

The Company enters into reinsurance contracts in the normal course of business in order to limit the potential for losses arising

from certain exposures. Outwards reinsurance premiums are accounted for in the same year as the related premiums for the

direct or inwards reinsurance business being reinsured.

Reinsurance liabilities comprise premiums payable for outwards reinsurance contracts and are recognised as an expense when

due. Reinsurance assets include balances due from reinsurance companies for paid and unpaid losses. Reinsurance assets are

measured consistently with the amounts associated with the underlying insurance contract and in accordance with the terms

of the reinsurance contract. Reinsurance is recorded as an asset unless a right of set-off exists, in which case the associated

liabilities are reduced to take account of reinsurance.

Reinsurance assets are subject to impairment testing and the carrying amount is reduced to its recoverable amount. The

impairment loss is recognised as an expense in the profit and loss account. The asset is impaired if objective evidence is

available to suggest that it is probable that the Company will not be able to collect the amounts due from reinsurers.

RiverStone International Ireland dac

Notes to the financial statements (continued)

The reinsurers’ share of claims incurred, in the profit and loss account, reflects the amounts received or receivable from

reinsurers in respect of those claims incurred during the year.

1.13 Insurance receivables and payables

Receivables and payables arising under insurance contracts are recognised when due and measured at amortised cost, using

the effective interest rate method. A provision for impairment is established when there is objective evidence that, as a result

of one or more events that occurred after the initial recognition, the estimated future cash flows have been impacted.

2 Critical accounting judgements and key sources of estimation uncertainty

In the application of the Company’s accounting policies, which are described in note 1, the Directors are required to make

judgments, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from

other sources. The estimates and associated assumptions are based on historical experience and other factors that are

considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised

in the year in which the estimate is revised if the revision affects only that year, or in the year of the revision and future years

if the revision affects both current and future years.

2.1 Critical judgements in applying the Company’s accounting policies

The following are the critical judgements, apart from those involving estimations (which are dealt with separately below), that

the directors have made in the process of applying the Company’s accounting policies and that have the most significant effect

on the amounts recognised in the financial statements.

Intangible liability

The Company applies an expanded presentation in accounting for portfolio transfers. When the fair value of both the

contractual insurance rights acquired and insurance obligations assumed are higher than the liability measured in accordance

with the Company’s accounting policies, the Company records the difference as an intangible liability. The intangible liability

is amortised in line with the underlying liabilities to which it relates.

Reinsurance assets

Reinsurance assets include balances due from reinsurance companies for paid and unpaid losses. Reinsurance assets are

measured in accordance with the accounting policy stated in note 1.12.

Impairment of debtors

The Company’s policy is to review its debtors for impairment on at least an annual basis. In determining whether an

impairment loss should be charged to the profit and loss account at the reporting date, the Company makes judgements as to

whether any observable data exists indicating evidence of impairment which would be likely to result in a measurable decrease

in the timings and amounts of the estimated future cash flows.

2.2 Key Sources of estimation uncertainty

The key assumptions concerning the future, and other key sources of estimation uncertainty at the balance sheet date, that

have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial

year, are discussed below.

2.2.1 Valuation of liabilities of non-life insurance contracts

Estimates are made for both the expected ultimate cost of claims reported and claims incurred but not reported (IBNR) at the

balance sheet date. The estimate of IBNR is generally subject to a greater degree of uncertainty than that for reported claims.

In calculating the estimated liability, the Company uses a variety of estimation techniques based upon statistical analyses of

historical experience which assumes past trends can be used to project future developments. The Company has significant

exposure to MedMal insurance risk, which carries considerable uncertainty in the estimate for technical provisions and

therefore can result in a wide range of possible outcomes, above and beyond that experienced in traditional non-life insurance

products. The long-tail nature of the technical provisions for MedMal products can result in larger actual to expected

development of a claim and can be dependent on legislative initiatives and the ability to settle a claim outside of a court of

law. The carrying amount for non-life insurance contract liabilities at the balance sheet date is €319 million (2022: €329

million).

RiverStone International Ireland dac

Notes to the financial statements (continued)

2.2.2 Discounting of Periodic Payment Orders (PPOs) and Annuities

The Company’s portfolio includes certain long-term liabilities, Periodic Payment Orders (PPOs) on its UK portfolio and annuity

claims on its German MedMal portfolio. Both the PPOs and annuity claims are long-term claims with predominantly court

approved regular payments for future care costs of the claimant.

Annual cashflows are projected in accordance with the claimants’ life expectancy. The cashflows are increased in line with an

assumed claims inflation rate. In previous years the cashflows were discounted to the valuation date at an assumed discount

rate. The use of discounting is subject to annual approval from the Central Bank of Ireland. The Company is required to meet

all the conditions as set out under Regulation 59 (2) of S.I. No. 262/2015 - European Union (Insurance Undertakings: Financial

Statements) Regulations 2015, however, following the change to internal reinsurance arrangement in respect of the long-term

liabilities, whereby these liabilities are now fully reinsured, and the Company will not generate investment income in respect

of the long-term liabilities, the Company does not meet all of the conditions in the Regulations and is not permitted to use

discounting.

2.2.3 Valuation of financial instruments

The directors use their judgement in selecting an appropriate valuation technique. Where possible, financial instruments are

marked at prices quoted in active markets. In certain instances, such price information is not available for all instruments and

the Company uses valuation techniques to measure such instruments. These techniques use “market observable inputs” where

available, derived from similar assets in similar and active markets, from recent transaction prices for comparable items or

from other observable market data. For positions where observable reference data are not available for some or all parameters

the Company estimates the non-market observable inputs used in its valuation models. For derivative financial instruments,

assumptions are made based on quoted market rates adjusted for specific features of the instrument.

FRS 102 section 11.27, establishes a fair value hierarchy that prioritises the inputs to valuation techniques used to measure fair

value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical asset or liabilities

(Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are as follows:

• Level 1 – The unadjusted quoted price in an active market for identical assets or liabilities that the entity can access

at the measurement date.

• Level 2 – Inputs other than quoted prices included within Level 1 that are observable (i.e. developed using market

data) for the asset or liability, either directly or indirectly.

• Level 3 – Inputs are unobservable (i.e. for which market data is unavailable) for the asset or liability.

Inputs are used in applying the various valuation techniques and broadly refer to the assumptions that market participants use

to make valuation decisions, including assumptions about risk. Inputs may include price information, volatility statistics, yield

curves, credit spreads, liquidity statistics and other factors.

The use of different valuation techniques could lead to different estimates of fair value.

3 Segmental information

(a) Analysis of gross premiums written

2023

2022

By geographical segment:

€000

Italy

(2)

RiverStone International Ireland dac

Notes to the financial statements (continued)

3 Segmental information – continued

(b) Analysis of gross premiums written, gross premiums earned, gross claims incurred, gross operating expenses, allocated investment return, other technical income and the reinsurance

balance

Gross

premiums

written

2023

€000

Gross

premiums

earned

2023

€000

Gross

claims

incurred

2023

€000

Gross

operating

expenses

2023

€000

Allocated

investment

return

2023

€000

Other

technical

income

2023

€000

Reinsurance

balance

2023

€000

Direct insurance:

- Motor

(4,692)

(140)

4,783

- Liability

(17,926)

(3,990)

1,560

(103)

12,895

- Property

(1)

- Creditor / Personal Accident

1,840

(1,840)

(20,779)

(4,130)

1,608

(103)

15,839

2022

€000

2022

€000

2022

€000

2022

€000

2022

€000

2022

€000

2022

€000

Direct insurance:

- Motor

5,935

(93)

(69)

(6,969)

- Liability

(38,649)

(3,394)

(2,492)

27,919

- Property

(7)

- Creditor / Personal Accident

(2)

139

(138)

(2)

(32,565)

(3,486)

(2,561)

20,805

All the above amounts are derived from continuing activities.

RiverStone International Ireland dac

Notes to the financial statements (continued)

4 Net investment return

Net

investment

income

2023

€000

Net

investment

expense

2023

€000

Net realised

gains and

losses

2023

€000

Changes in

fair value

2023

€000

Net

investment

result

2023

€000

Financial assets:

- measured at fair value through

profit or loss

2,028

(123)

(845)

(6)

1,054

- measured at amortised cost

135

- measured at cost

526

- derivatives

(300)

1,134

834

2,689

(123)

(1,145)

1,128

2,549

2022

€000

2022

€000

2022

€000

2022

€000

2022

€000

Financial assets:

- measured at fair value through

profit or loss

2,595

(855)

(298)

(4,517)

(3,075)

- measured at amortised cost

791

- measured at cost

- derivatives

(384)

(1,629)

(2,013)

3,431

(855)

(682)

(6,146)

(4,252)

5 Net operating expenses

2023

€000

2022

€000

Acquisition costs

225

285

Administrative expenses

3,905

3,201

Gross operating expenses

4,130

3,486

Reinsurance commissions and profit participation

(346)

(385)

Net operating expenses

3,784

3,101

RiverStone International Ireland dac

Notes to the financial statements (continued)

6 Employees

2023

2022

The aggregate payroll costs in respect of employees were as follows:

€000

Wages and salaries

1,000

965

Social welfare costs

113

108

Other pension costs

1,192

1,148

The average number of persons employed by the Company (including executive directors)

during the year was as follows:

2023

2022

Management

Claims

Compliance

Finance

7 Directors’ remuneration

2023

2022

€000

Directors’ emoluments

546

527

Contributions paid to retirement benefit scheme

Directors’ fees

108

127

The Company made payments to a defined contribution scheme for two directors (2022: two directors). All remuneration

was paid by the Company. Group non-executive directors Andrew Diaz-Matos and John McGlynn did not receive a fee for

their directorships of the Company.

8 Profit/(loss) on ordinary activities before tax

The profit/(loss) for the year has been arrived at after charging the following items :

2023

2022

€000

Auditor’s remuneration

- Audit of the Company’s individual accounts

192

180

- Other assurance services

- Other non-audit services

Depreciation of tangible assets

RiverStone International Ireland dac

Notes to the financial statements (continued)

9 Taxation

2023

2022

On loss for the year:

€000

Corporation tax (credit)/charge

Adjustments in respect of prior years

Total current tax (credit)/charge

Reconciliation of current tax (credit)/charge based on applying the standard rate of tax to

the loss per the financial statements and the current tax (credit)/charge reported in the

financial statements:

2023

€000

2022

€000

Loss for the year before tax

(9,236)

(21,596)

Current tax (credit)/charge based on standard rate of 12.5% (2022: 12.5%)

Adjustments from standard rate:

- Adjustments in respect of prior years

- Miscellaneous adjustments

Total tax (credit)/charge for the year

- Unrecognised tax losses carried forward

(58,862)

(50,722)

10 Debtors arising out of direct insurance operations

2023

€000

2022

€000

Amounts owed by intermediaries

7,485

6,156

Amounts owed by fellow subsidiary undertakings

5,994

7,235

13,479

13,391

All amounts are due within one year.

11 Other debtors

2023

€000

2022

€000

Other debtors

193

1,228

193

1,228

All amounts are due within one year.

RiverStone International Ireland dac

Notes to the financial statements (continued)

12 Tangible assets

Computer

equipment

Fixtures and

fittings

Total

€000

Cost

At beginning of year

Cost at end of year

Accumulated Depreciation

At beginning of year

Charge for year

At end of year

Net Book Value

At 31 December 2023

At 31 December 2022

13 Investments in group undertakings and participating interests

The Company has the following investments in group undertakings at fair value:

2023

€000

2022

€000

Investment in subsidiary

1,612

Investment in participating shares

13,977

15,589

The Company has the following loans to group undertakings at amortised cost:

2023

€000

2022

€000

Oxenwood Partners LP

3,085

Investment in group undertakings

Country of

incorporation

Nature of business

2023

Percentage

2022

Percentage

Catalina Oxenwood European

Investments Ltd.

Bermuda

Investment company

16.33%

Propco (Swansea) Limited

Investment company

55.9%

In preparation for the change in ownership of the Company, which took place on 2 February 2024, the Company’s investments

in group undertakings and participating interests were sold during the financial year.

RiverStone International Ireland dac

Notes to the financial statements (continued)

14 Financial instruments

Fair value

through

profit and

loss

Fair value

– available

for sale

Amortised

cost

Cost

Un-

discounted

receivable

Total

2023

Financial assets

€000

Investments in group undertakings and

participating interests

- Loans to group undertakings (note 13)

- Investment in group undertakings (note 13)

Other financial investments

- Shares and other variable yield securities in unit

trusts

30,933

- Debt securities and other fixed income securities

32,302

30,570

62,872

63,235

30,570

93,805

Other debtors and assets

- Cash and cash equivalents

9,733

- Debtors arising out of direct insurance operations

13,479

- Other debtors

193

9,733

13,672

23,405

Total financial assets

63,235

30,570

9,733

13,672

117,210

2022

Financial assets

€000

Investments in group undertakings and

participating interests

- Loans to group undertakings (note 13)

3,085

- Investment in group undertakings (note 13)

15,589

3,085

18,674

Other financial investments

- Shares and other variable yield securities in unit

trusts

20,860

- Debt securities and other fixed income securities

24,451

41,187

65,638

45,311

41,187

86,498

Other debtors and assets

- Cash and cash equivalents

9,495

- Debtors arising out of direct insurance operations

13,391

- Other debtors

1,228

9,495

14,619

24,114

Total financial assets

60,900

41,187

3,085

9,495

14,619

129,286

RiverStone International Ireland dac

Notes to the financial statements (continued)

14 Financial instruments – continued

Fair value

through

profit and

loss

Fair value

– available

for sale

Amortised

cost

Cost

Un-

discounted

payable

Total

2023

Financial liabilities

€000

- Subordinated loan notes

24,056

- Creditors arising out of direct insurance

operations

- Other creditors

182

123

305

Total financial liabilities

182

24,056

123

24,361

2022

Financial liabilities

€000

- Subordinated loan notes

23,787

- Creditors arising out of direct insurance

operations

- Other creditors

1,315

112

1,427

Total financial liabilities

1,315

23,787

129

25,231

15 Derivative financial instruments

The Company uses derivative financial instruments to reduce exposure to foreign exchange risk movements. The Company

had three open derivative instruments as at 31 December 2023 (2022: two). The table below sets out the open derivatives at

31 December 2023:

Foreign exchange forward

contract 2023

Contract date

Settlement

date

Contract

amount

Settlement

amount

Fair value at

31 December

Net

gains/(losses)

‘000

€000

EUR

23 Nov 2023

31 Jan 2024

EUR€9,196

US$10,056

(108)

EUR

19 Dec 2023

31 Jan 2024

EUR€7,184

Stg£6,200

(42)

EUR

19 Dec 2023

31 Jan 2024

EUR€6,468

US$7,114

(32)

(182)

Foreign exchange forward

contract 2022

Contract date

Settlement

date

Contract

amount

Settlement

amount

Fair value at

31 December

Net

gains/(losses)

‘000

€000

EUR

17 Oct 2022

25 Jan 2023

EUR€16,136

US$16,000

(1,282)

EUR

09 Nov 2022

24 Feb 2023

EUR€5,882

Stg£5,203

(33)

(1,315)

RiverStone International Ireland dac

Notes to the financial statements (continued)

16 Accrued interest and prepayments

2023

€000

2022

€000

Accrued interest

519

716

Prepayments

527

768

17 Technical provisions

Provision for

unearned

premiums

€000

Claims

outstanding

€000

Total

€000

Gross amount

At beginning of year

329,187

Movement in provision

(11,666)

Foreign exchange movement

1,229

At end of year

318,750

Reinsurance amount

At beginning of year

266,591

Movement in provision

(7,042)

Foreign exchange movement

1,179

At end of year

260,728

Net technical provision

At beginning of year

62,596

At end of year

58,022

2023

€000

2022

€000

Net technical provisions at end of year

58,022

62,596

Included within claims outstanding is a provision for future claims handling costs of €1,727,307 (2022: €2,113,249).

18 Creditors arising out of insurance operations

2023

€000

2022

€000

Amounts due to cedants

19 Other creditors

2023

€000

2022

€000

Forward currency contracts (Note 15)

182

1,315

Other creditors

VAT payable

305

1,427

RiverStone International Ireland dac

Notes to the financial statements (continued)

20 Subordinated loan notes

In December 2016 the Company issued €23.8 million of floating rate subordinated loan notes. The notes are due in January

2027 and they are listed on the Channel Island Stock Exchange. Interest on the notes is based on EURIBOR plus a margin of

7.2%. The margin increased to 7.95% with effect from 23 December 2019. Interest expense in connection with these notes

was €2,610,097 for the year ended 31 December 2023 (2022: €1,906,439).

21 Accruals

2023

€000

2022

€000

Other accruals

1,442

883

1,442

883

22 Called up share capital

2023

Stg£000

2022

Stg£000

Authorised

50,000,000 ordinary shares of £1 each

50,000

2023

€000

2022

€000

Allotted, called up and fully paid

46,722,601 ordinary shares of £1 each

52,717

23 Reconciliation of shareholder’s funds

capital

2023

€000

Capital

contribution

2023

€000

Fair value

reserve

2023

€000

Retained

earnings

2023

€000

Total

shareholder’s

funds

2023

€000

Opening balance

52,717

11,000

(4,106)

(18,265)

41,346

Loss for the year

(9,236)

Other comprehensive income

1,802

Closing balance

52,717

11,000

(2,304)

(27,501)

33,912

2022

€000

2022

€000

2022

€000

2022

€000

2022

€000

Opening balance

52,717

11,000

(143)

3,331

66,905

Loss for the year

(21,596)

Other Comprehensive income

(3,963)

Closing balance

52,717

11,000

(4,106)

(18,265)

41,346

RiverStone International Ireland dac

Notes to the financial statements (continued)

24 Capital management

Capital management refers to implementing measures to maintain sufficient capital and assessing the internal capital

adequacy of the Company. The Company has a capital management plan which ensures it meets its objectives of maintaining

a prudent cushion of equity to protect the Company’s economic viability and to finance new growth opportunities, and

maintaining sufficient capital in order to meet regulatory requirements. The capital management plan forms a part of the

strategic decision making of the Company. The Company was in compliance with regulatory capital requirements throughout

the year. The Company received an irrevocable, voluntary, non-refundable and unconditional capital contribution of €11

million in 2019. In February 2024, the Company received additional capital of €73.7 million as part of the commutation of the

intra-group reinsurance arrangement.

The Company is a Solvency II Undertaking authorised under the European Union (Insurance and Reinsurance) Regulations

2015 to carry on insurance business. Under the Solvency II regime, the Company is subject to minimum capital requirements

and solvency capital requirements. The Company uses the standard formula to determine these in the context of the

measurement of assets, liabilities and capital to satisfy the requirements set out in Pillar I of the regulations. The table below

sets out the Solvency II Solvency Capital Requirement (“SCR”) and the Company’s SCR coverage.

2023

€000

2022

€000

Solvency Capital Requirement

30,139

33,994

Total Available Own Funds to meet the SCR

48,548

56,773

Total Eligible Own Funds to meet the SCR

39,561

49,984

Ratio of Eligible Own Funds to SCR

131%

147%

25 Pension commitments

Pensions for employees, including Directors of the Company, are funded through an independent external defined

contribution scheme. The total pension cost for the year amounted to €79,335 (2022: €75,328).

At the 31 December 2023, there was €Nil outstanding contributions in relation to this scheme (2022: €Nil).

26 Financial risk management

The Company operates a number of committees which meet on a regular basis to review, monitor and control the Company’s

financial and risk matters. Key risks are documented and graded according to their likelihood and potential impact. Identified

risks are assessed and mitigated or eliminated where possible, or otherwise closely monitored. These risks include market

risk (currency risk, interest rate risk and price risk), credit risk and liquidity risk.

The Company may seek to minimise the effects of these risks by using derivative financial instruments to hedge risk exposures.

The Company does not enter into or trade financial instruments, including derivative financial instruments, for speculative

purposes.

(a) Fair value

Fair value is the amount for which an asset or liability could be exchanged between willing parties in an arm’s length

transaction. Fair values are determined at prices quoted in active markets. In some instances, such price information is not

available for all instruments and the Company applies valuation techniques to measure such instruments. These valuation

techniques make maximum use of market observable data but in some cases management estimate other than observable

market inputs within the valuation model. There is no standard model and different assumptions would generate different

results.

Fair values are subject to a control framework designed to ensure that input variables and output are assessed independent

of the risk taker. These inputs and outputs are reviewed and approved by the asset management team. The Company

classifies its financial instruments held at fair value in its balance sheet using a fair value hierarchy, as follows:

RiverStone International Ireland dac

Notes to the financial statements (continued)

26 Financial risk management – continued

• Level 1 – The unadjusted quoted price in an active market for identical assets or liabilities that the entity can access at

the measurement date.

• Level 2 – Inputs other than quoted prices included within Level 1 that are observable (i.e. developed using market data)

for the asset or liability, either directly or indirectly.

• Level 3 – Inputs are unobservable (i.e. for which market data is unavailable) for the asset or liability.

The table below analyses financial instruments held at fair value in the Company’s balance sheet at the reporting date by its

level in the fair value hierarchy:

Level 1

2023

€000

Level 2

2023

€000

Level 3

2023

€000

Total

2023

€000

Financial assets

Shares and other variable yield securities in unit trusts

30,933

Debt securities and other fixed income securities

62,872

30,933

93,805

Financial liabilities

Forward currency contracts

182

Level 1

2022

€000

Level 2

2022

€000

Level 3

2022

€000

Total

2022

€000

Financial assets

Shares and other variable yield securities in unit trusts

20,860

Debt securities and other fixed income securities

65,638

Investment in group undertakings

15,589

65,638

36,449

102,087

Financial liabilities

Forward currency contracts

1,315

Information on the methods and assumptions used to determine fair values for each major category of financial instrument

at fair value is provided below:

Level 3 investments have decreased during the year in line with the investment strategy of the Company. Investments in

group undertakings were sold during the year in preparation for the change in ownership of the Company, which took place

on 2 February 2024. The sales proceeds were reinvested in line with the strategic asset allocation which targets a high quality,

diversified portfolio to achieve the long-term financial objectives of the Company while managing within the risk appetite

framework.

Equities and Shares and other variable yield securities in unit trust

Equity instruments listed on a recognised exchange are valued using prices sourced from the primary exchange on which they

are listed. Shares and other variable securities and holdings in unit trusts are generally categorised as Level 1 in the fair value

hierarchy except where they are not actively traded, in which case they are generally measured on prices of recent

transactions in the same instrument and are categorised as Level 2. Level 3 investments include holdings for which there is

no active market trading or a lack of recent transaction price. The fair value is estimated using a valuation technique, the

objective being to estimate what the transaction price would have been on the measurement date in an arm’s length

exchange motivated by normal business considerations.

RiverStone International Ireland dac

Notes to the financial statements (continued)

26 Financial risk management – continued

Debt securities and other fixed income securities

Debt securities are generally valued using prices provided by external pricing vendors. Pricing vendors will often determine

prices by consolidating prices of recent trades for identical or similar securities obtained from a panel of market makers into

a composite price. The pricing service may make adjustments for the elapsed time from a trade date to the valuation date to

take into account available market information. Lacking recently reported trades, pricing vendors will use modelling

techniques to determine a security price. The Company performs an analysis of the prices obtained from pricing vendors to

ensure that they are reasonable and produce a reasonable estimate of fair value. The Company considers both qualitative

and quantitative factors as part of this analysis. Examples of analytical procedures performed include reference to recent

transactional activity for similar securities, review of pricing statistics and trends and consideration of recent relevant market

events. Debt securities and other fixed income securities are ordinarily categorised as Level 2.

Investments in group undertakings

There is no active market trading or a lack of recent transaction price for investments in group undertakings. The fair value

is estimated using a valuation technique, the objective being to estimate what the transaction price would have been on the

measurement date in an arm’s length exchange motivated by normal business considerations. Investment in group

undertakings are ordinarily categorised as Level 3, with the fair value based on the net asset value of the undertaking.

(b) Market Risk

Market risk is the risk of adverse financial impact as a consequence of market movements such as currency exchange rates,

interest rates and other price changes. Market risk arises due to fluctuations in both the value of assets held and the value of

liabilities.

The Investment policy governs the Company’s exposure to market risk. Exposures are controlled by the setting of investment

limits in line with the Company’s risk appetite. The Investment policy is approved by the Board and is applied by the Group

Investment team, who are responsible for making and implementing investment decisions on behalf of the Company in line

with the Investment policy and risk appetite statements approved by the Board.

The primary goal of the Company’s investment strategy is to maximise investment returns within the Board approved Risk

Appetite Statement. The investment management philosophy is implemented through both internal investment

management decisions and the assistance of external investment managers to best achieve the objectives of the Investment

policy. The majority of investments are held at fair value, with changes in fair value recorded through the profit or loss because

their performance is actively monitored and they are managed on a fair value basis.

Interest rate risk

Interest rate risk is the risk that the value of future cash flows of a financial instrument will fluctuate because of changes in

market interest rates.

The Company is exposed to interest rate risk as it invests in long term investments at both fixed and floating interest rates.

The risk is managed by the Company by maintaining an appropriate mix between fixed and floating rate investments.

The sensitivity analysis below have been determined based on the exposure to interest rates for investments held at the

balance sheet date. A 1% increase or decrease is used when reporting interest rate risk internally to key management

personnel and represents management’s assessment of the reasonably possible change in interest rates. Financial

instruments designated as measured at fair value through profit or loss, measured at amortised cost and measured at cost

are included in this calculation (note 14).

Pre-tax profit

Shareholder’s equity

2023

€000

2022

€000

2023

€000

2022

€000

1% increase

(3,420)

(2,979)

(2,992)

(2,607)

1% decrease

3,420

2,979

2,992

2,607

2% increase

(6,840)

(5,958)

(5,985)

(5,213)

2% decrease

6,840

5,958

5,985

5,213

RiverStone International Ireland dac

Notes to the financial statements (continued)

26 Financial risk management – continued

Foreign exchange risk

The Company undertakes certain transactions denominated in foreign currencies. Hence, exposures to exchange rate

fluctuations arise. The risk of exposing the Company assets or liabilities to exchange rate fluctuations is managed by broadly

matching liabilities with assets in the same currencies.

The Company reviews assets and liabilities by currency each month to ensure they are matched where possible and that cash

is available to discharge liabilities in their respective currencies. From time to time, the Company may utilise foreign currency

forward contracts as part of its overall foreign currency risk management strategy or to obtain exposure to a particular

financial market, as well as for yield enhancement. These derivatives are not designated as hedging investments.

The most significant currency to which the Company is exposed is pounds Sterling (2022: Sterling). At 31 December 2023, if

Euro had weakened/strengthened by 20% against pounds Sterling, with all other variables held constant, shareholder’s funds

would have been €0.4 million (2022: €0.2 million) higher/lower.

Other price risk

The Company is exposed to price risk arising from fluctuations in the value of financial instruments as a result of changes in

the market prices and the risks inherent in all investments. The Company has no significant concentration of price risk. The

risk is managed by the Company by maintaining an appropriate mix of investment instruments.

The Company’s sensitivity to a 1% increase and decrease in market prices is as follows:

2023

2022

€000

1% increase

Movement in fair value of shares and other variable securities in unit trusts

309

209

Movement in fair value of debt securities and other fixed income securities

629

656

Movement in fair value of investments in group undertakings

156

2023

2022

€000

1% decrease

Movement in fair value of shares and other variable securities in unit trusts

(309)

(209)

Movement in fair value of debt securities and other fixed income securities

(629)

(656)

Movement in fair value of investments in group undertakings

(156)

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the

Company. The key areas of exposure to credit risk for the Company are in relation to its investment portfolio, reinsurance

programme and to a lesser extent amounts due from intermediaries. The objective of the Company in managing its credit risk

is to ensure risk is managed in line with the Company’s risk appetite. The Company has established policies and procedures

in order to manage credit risk and methods to measure it.

The Company monitors the credit risk in relation to its investment portfolio and reinsurance programme by monitoring

external credit ratings for the investments and reinsurance assets held by the Company on a regular basis. The Company’s

intra-group reinsurance arrangement is protected by collateral held in a trust fund at a level equivalent to at least 100% of the

Company’s Solvency II technical provisions and a letter of credit with a value of at least 10% of the Solvency II technical

provisions. The intra-group reinsurance arrangement was commuted as part of the change in ownership in February 2024.

The following table shows aggregated credit risk exposure for assets with external credit ratings. The financial instruments

carrying amount best represents the maximum exposure to credit risk. The table also shows the carrying value of assets that

are neither past due nor impaired, the ageing of assets that are past due but not impaired and assets that have been impaired.

The factors considered in determining whether the value of an asset is impaired are: analysis of impairment, ageing of

balances, past loss experience, current economic conditions and other relevant circumstances.

RiverStone International Ireland dac

Notes to the financial statements (continued)

26 Financial risk management – continued

2023

€000

2022

€000

Investment in group undertakings

15,589

Shares and other variable yield securities in unit trusts

30,933

20,860

Debt securities

62,872

65,638

Loans to group undertakings

3,085

Assets arising from reinsurance contracts held

260,728

266,591

Debtors arising out of direct insurance operations

13,672

14,619

Accrued interest

519

716

Cash and cash equivalents

9,733

9,495

Total assets bearing credit risk

378,457

396,593

AAA

22,550

17,472

6,741

739

18,203

22,545

BBB

27,888

40,031

Below BBB or not rated

303,075

315,806

Total assets bearing credit risk

378,457

396,593

Neither past due nor impaired

378,456

396,587

Past due less than 30 days

Past due less 31 to 60 days

Past due less 61 to 90 days

Past due more than 90 days

Past due and impaired

Total assets bearing credit risk

378,457

396,593

(d) Liquidity risk

Liquidity risk is the risk that the Company cannot meet its obligations associated with financial liabilities as they fall due. The

Company manages liquidity risk by monitoring forecast and actual cash flows and matching the maturity profiles of assets and

liabilities. Liquidity management ensures that the Company has sufficient access to funds necessary to cover insurance claims.

Most of the Company’s assets are marketable securities which could be converted into cash when required.

The following table shows details of the expected maturity profile of the Company’s undiscounted obligations with respect to

its financial liabilities and estimated cash flows of recognised insurance contract liabilities. Unearned premiums are excluded

from this analysis. The table includes both interest and principal cash flows.

Financial liabilities and claims outstanding

Less than

1 year

2023

€000

1 – 5

years

2023

€000

5+ years

2023

€000

Total

2023

€000

Subordinated loan notes

24,056

Creditors arising out of direct insurance operations

Other creditors

305

Financial liabilities

305

24,056

24,361

Claims outstanding – undiscounted

28,497

80,109

210,144

318,750

28,802

104,165

210,144

343,111

RiverStone International Ireland dac

Notes to the financial statements (continued)

26 Financial risk management – continued

Financial liabilities and claims outstanding

2022

€000

2022

€000

2022

€000

2022

€000

Subordinated loan notes

23,787

Creditors arising out of direct insurance operations

Other creditors

1,427

Financial liabilities

1,444

23,787

25,231

Claims outstanding – undiscounted

30,391

85,666

213,130

329,187

31,835

109,453

213,130

354,418

27 Insurance risk management

The principal risk the Company faces under insurance contracts is that the actual claims and benefit payments or the timing

thereof, differ from expectations. This is influenced by the frequency of claims, severity of claims, actual benefits paid and

subsequent development of long–term claims. Therefore, the objective of the Company is to ensure that sufficient reserves

are available to cover these liabilities. The Company’s business lines are all in run-off.

The insurance liabilities, net of external reinsurance, are protected by a collateralised intra-group reinsurance arrangement,

however, the intra-group reinsurance arrangement was commuted in February 2024 as part of the change in ownership of

the Company. Furthermore, strict claim review policies are in place to assess all new and ongoing claims, regular detailed

review of claims handling procedures and frequent review of all claims are the key policies and procedures put in place to

reduce the risk exposure of the Company. The Company further enforces a policy of actively managing and promptly pursuing

claims, in order to reduce its exposure to unpredictable future developments that can negatively impact the business. Inflation

risk is mitigated by taking expected inflation into account when estimating insurance contract liabilities.

The concentration of non-life insurance and reinsurance by the location of the underlying risk is summarised below by

reference to liabilities.

Gross

Reinsurance

Net

2023

€000

2022

€000

2023

€000

2022

€000

2023

€000

2022

€000

70,819

68,041

68,709

65,657

2,110

2,384

Italy

923

2,770

923

2,770

Germany

246,353

257,716

190,670

197,735

55,683

59,981

Other

655

660

426

429

229

231

318,750

329,187

260,728

266,591

58,022

62,596

The concentration of non-life insurance and reinsurance by type of contract is summarised below by reference to liabilities.

Gross

Reinsurance

Net

2023

€000

2022

€000

2023

€000

2022

€000

2023

€000

2022

€000

Motor

69,761

66,022

68,021

64,344

1,740

1,678

Liability

248,066

260,395

191,784

199,477

56,282

60,918

Other direct insurance

923

2,770

923

2,770

318,750

329,187

260,728

266,591

58,022

62,596

RiverStone International Ireland dac

Notes to the financial statements (continued)

27 Insurance risk management – continued

Assumptions and sensitivities

The risks associated with the non-life insurance contracts are complex and subject to a number of variables which complicate

quantitative sensitivity analysis. The Company uses several statistical and actuarial techniques based on past claims

development experience. This includes indications such as average claims cost, ultimate claims numbers and expected loss

ratios. The key methods used by the Company for estimating liabilities are:

• chain ladder;

• expected loss ratio;

• Bornhuetter-Ferguson;

• trending;

• benchmarking; and

• the Bootstrap technique.

The principal assumption underlying the liability estimates is that the Company’s future claims development will follow past

claims development experience. This includes assumptions in respect of average claim costs, claim handling costs, claim

inflation factors and claim numbers for each accident year. Additional qualitative judgements are used to assess the extent to

which past trends may not apply in the future, for example: once–off occurrence; changes in market factors such as public

attitude to claiming, economic conditions, as well as internal factors such as portfolio mix, policy conditions and claims

handling procedures.

Judgement is further used to assess the extent to which external factors such as judicial decisions and government legislation

affect the estimates. Other key circumstances affecting the reliability of assumptions include variation in interest rates, delays

in settlement and changes in foreign currency rates. The Company considers that the liability for non-life insurance claims

recognised in the balance sheet is adequate. However, actual experience will differ from the expected outcome.

Some results of sensitivity testing are set out below, showing the impact on profit before tax and shareholder’s equity gross

and net of reinsurance. For each sensitivity the impact of a change in a single factor is shown, with other assumptions

unchanged.

Pre-tax profit

Shareholder’s equity

2023

€000

2022

€000

2023

€000

2022

€000

5% increase in claims outstanding

- Gross

(15,938)

(16,459)

(13,946)

(14,402)

- Net

(2,901)

(3,130)

(2,538)

(2,739)

5% decrease in claims outstanding

- Gross

15,938

16,459

13,946

14,402

- Net

2,901

3,130

2,538

2,739

The Company’s method for sensitivity testing has not changed significantly from the prior year.

Claims development tables

The following tables show the development of claims over a period of time on both a gross and net of reinsurance basis. The

tables show changes in the gross and net loss reserves in subsequent years from the prior loss estimates based on experience

as of the end of each succeeding year. The estimate is increased or decreased as more information becomes known about the

frequency and severity of losses for individual years. A positive development means the original estimate was higher than the

current estimate; a negative development means that the current estimate is higher than the original estimate. The “Reserve

development” line represents, as of the date indicated, the difference between the latest re-estimated liability and the

reserves as originally estimated. The negative development from 2016 to 2018 is mainly due to the Company no longer

discounting its long-term liabilities, a change which occurred in 2019. The “Cumulative payments to date” line represents

total claim payments on the reserves since they were originally estimated.

RiverStone International Ireland dac

Notes to the financial statements (continued)

27 Insurance risk management – continued

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Gross claims development

€000

Reserves held at end of year

21,456

272,123

142,723

102,382

355,288

374,738

378,701

337,363

329,187

318,750

One year later

18,769

210,763

125,118

92,022

428,802

422,513

373,931

369,928

349,966

Two years later

13,238

193,158

114,759

144,139

476,577

417,743

406,496

390,707

Three years later

13,850

182,798

166,875

144,119

471,807

450,308

427,275

Four years later

13,622

234,915

166,856

134,501

504,372

471,087

Five years later

13,607

234,895

157,238

127,198

525,151

Six years later

13,607

225,277

149,935

129,579

Seven years later

13,609

217,974

152,316

Eight years later

13,459

220,355

Nine years later

11,619

Reserve development

9,836

51,768

(9,592)

(27,197)

(169,863)

(96,349)

(48,574)

(53,344)

(20,779)

Cumulative payments to date

10,696

136,383

68,344

45,607

206,401

152,337

108,525

71,957

31,216

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Net claims development

€000

Reserves held at end of year

8,680

251,647

48,301

34,244

123,007

73,998

72,515

62,631

62,596

58,022

One year later

7,891

233,472

42,070

30,583

133,646

85,745

75,536

74,795

67,949

Two years later

7,691

227,241

38,409

35,608

145,393

88,766

87,700

80,148

Three years later

7,837

223,580

43,434

35,353

148,414

100,930

93,053

Four years later

7,721

228,605

43,179

35,169

160,578

106,283

Five years later

7,714

228,350

42,995

35,979

165,931

Six years later

7,714

228,166

43,805

35,937

Seven years later

7,714

228,976

43,763

Eight years later

7,710

228,934

Nine years later

7,710

Reserve development

970

22,713

4,538

(1,693)

(42,924)

(32,285)

(20,538)

(17,517)

(5,353)

Cumulative payments to date

7,710

63,047

41,446

33,620

107,910

48,262

35,032

22,127

9,928

RiverStone International Ireland dac

Notes to the financial statements (continued)

28 Dividends

2023

€000

2022

€000

No interim dividends were paid during the year (2022: None)

29 Lease commitments

2023

€000

2022

€000

Total future minimum lease payments under non-cancellable operating leases are as

follows:

Within one year

Between one and five years

144

The lease is accounted for within net operating expenses.

30 Cash flow statement

As the Company is a wholly owned subsidiary undertaking, its results will be consolidated in the financial statements of its

ultimate parent undertaking at 31 December 2023, Catalina Holdings (Bermuda) Ltd., a Company incorporated in Bermuda.

As Catalina Holdings (Bermuda) Ltd. is preparing a consolidated cash flow statement, the Company is availing of the exemption

under FRS102.3.17(d) not to present a cash flow statement.

31 Related party transactions

The Company is availing of the exemption under FRS102.33.1A not to disclose details of transactions with companies within

the Catalina Holdings (Bermuda) Ltd. group.

32 Ultimate parent undertaking

At 31 December 2023, the Company’s ultimate parent undertaking was Catalina Holdings (Bermuda) Ltd., a company

incorporated in Bermuda. The largest group in which the results of the Company are consolidated is that headed by Catalina

Holdings (Bermuda) Ltd. The Company was a wholly owned subsidiary of Catalina Foxtrot Holdings Limited, a company

incorporated in England.

With effect from 2 February 2024, the Company’s ultimate parent undertaking is RiverStone International Holdings Limited.

33 Subsequent Events

On 2 February 2024, the Company was acquired by RiverStone International Limited, following no objection from the Central

Bank of Ireland, and subsequently changed its name from Catalina Insurance Ireland dac to RiverStone International Ireland

dac, effective from 13 February 2024. As part of the transaction, immediately prior to completion, the Company commuted

the intra-group reinsurance arrangement with Catalina General Insurance Ltd. and received a capital injection of €73.7 million.

34 Approval of financial statements

The board of Directors approved these financial statements on 28 March 2024.