American Financial Group Inc. announced it has reached a definitive agreement to sell GAI Holding Bermuda and its subsidiaries, comprising the legal entities that own its Lloyd’s of London insurer, Neon, to RiverStone Holdings Ltd.

Upon closing of the sale, AFG expects release of all of its funds at Lloyd’s (FAL) including release of the letters of credit and collateral pledge facility that AFG guarantees in support of Neon’s FAL.

This transaction will complete AFG’s exit from the Lloyd’s of London insurance market — culminating a decision that was first announced in January 2020. AFG joined Lloyd’s in 2008 through an acquisition.

Financial details of the transaction were not disclosed. The deal is expected to close in the fourth quarter of 2020 after receiving the required regulatory approvals.

In accordance with generally accepted accounting principles, it is expected that AFG will record the sale in the third quarter. The sale is not expected to have a material impact on AFG’s ongoing results of operations. TigerRisk Capital Markets & Advisory acted as exclusive financial advisor to AFG.