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The boards of Omega and Canopius have reached an agreement on the terms of a recommended cash offer at 67p, valuing Omega at approximately £163.9m (including share capital to be issued). This is a 30.9% premium to the average closing price of 51.2p during the month to 23 March 2012, when Canopius expressed its interest in possibly making a bid, and a premium of 10.7% to the closing price immediately prior to the offer (25 April 2012). Canopius has received irrevocable undertakings to vote in favour of the acquisition from shareholders representing approximately 48.9% of the existing share capital of Omega. Omega Insurance Holdings is domiciled in Bermuda and listed on the London Stock Exchange. It is an international insurer/reinsurer with a focus on short-tail, property-oriented classes.
t was hit by a leap in the number of claims made, particularly after the earthquakes in Japan and New Zealand. Catastrophe losses at the firm totalled $85.6m (2010: $55.0m). It wasn't all bad news, however, as basic earnings per share rose from 17.6 cents to 36.5c, while cash levels jumped from $37.9m to $52.8m.
Omega had a tough 2011, doubling its pre-tax losses and cancelling its dividend. In March it reported losses before tax of $94.7m compared to a loss of $42.9m the previous year, on an income of $304.6m (2010: $356.1m) and net revenues of $257m (2010: $261.4m).
Bermuda-based Omega Insurance Holdings said it had received a takeover approach from rival Canopius. Privately-owned Canopius has offered 65p per share in cash for the entire issued share capital of Omega. The latter said it would now consult with shareholders and make a further announcement "when appropriate". The news did little to excite investors, with Omega's share price rising 0.4% in early trading on Tuesday
01 December 2011 Not for release, publication or distribution, in whole or in part, directly or indirectly, in, into or from any jurisdiction where to do so would constitute a violation of the relevant laws of such jurisdiction. 1 December 2011 PARTIAL CASH OFFER FOR UP TO 60,240,964 OF THE COMMON SHARES OF OMEGA INSURANCE HOLDINGS LIMITED ("OMEGA") BY HAVERFORD (BERMUDA) LIMITED ("HBL") HBL announces that it may decide not to extend the partial cash offer by HBL to acquire up to 60,240,964 of the common shares of Omega (the "Offer") and accordingly the offer may lapse. HBL does not agree with Omega's recent announcement that if the minimum levels of tenders were received by 1.00pm yesterday, the Offer may not lapse. Following the interim management statement of third quarter results by Omega, HBL requested further information from Omega, so HBL could understand the reasons for and consequences of the very significant and unexpected deterioration in Omega's financial position and prospects, in particular in comparison to the position indicated by HBL's previous due diligence. HBL is continuing to review this information and is considering its position. A further announcement will be made by HBL before 8.00am (London time) on Friday 2 December. Tenders have been received for substantially more than the maximum number of shares that may be acquired under the Offer. HBL confirms it indicated to the Omega Board on 29 November that, subject to the agreement of Omega, it would be willing to make a new offer for up to 60,240,964 shares, at a fixed price of 74p per share, with an initial closing date as soon as practicable after agreement with Omega has been reached, but otherwise on the same terms as the Offer. HBL stands ready to continue discussions and negotiations with Omega in connection with this possible new offer. Enquiries: Citi (Financial Adviser to Haverford (Bermuda) Limited) Tel: +44 (0)20 7986 4000 Basil Geoghegan John Sandhu Cyrille Cotte Powerscourt Tel: +44 (0)20 7250 1446 (Public Relations Adviser to Haverford (Bermuda) Limited) Giles Sanderson Nick Dibden Terms and expressions used but not defined in this announcement shall, unless the context otherwise requires, have the same meanings as given to them in the offer document posted to Omega Shareholders on 27 September 2011 (the "Offer Document").
Omega Insurance: Peel Hunt downgrades from hold to sell, target slashed from 84p to 58p.
73p floor on offer according to insurance insider http://m.insuranceinsider.com/byrne-poised-to-sweeten-omega-offer =10 rise % from current price Not bad in todays climate for doing nowt
Canopius walks away after Omega rejects offer Might be similar rns soon from Barbican
you should have received the Haverford offer docs by now which were posted on 27 Sept. The deadline for tendering your shares is 30 Nov 2011. Please see the announcement made by Haverford on the 27 Sept which is on our website for more info. Thanks David Coles Head of Corporate Development Omega Insurance Holdings Limited D: +44 (0)20 7767 3051 M: +44 (0)7540 018696 F: +44 (0)20 7488 9639 T: +44 (0)20 7767 3000 E: david.coles@omegauw.com
I have email from Omega this morning - following the confirmation of the Haverford offer they are re-posting the offer docs
Buy now at 62p Minimum sell price on offer by Haverford 70p max 82p
Read about these the other day Looks like there is a bidding war between Barbican and Canopius http://moneyam.uk-wire.com/cgi-bin/articles/201109271150320025P.html http://moneyam.uk-wire.com/cgi-bin/articles/201109220700347015O.html
"Sources said Barbican could make announcement over the next few days, although it is not clear what price the company is willing to offer and whether its bid will be an indicative offer conditional on further due diligence. One insider told The Telegraph that the offer could have a cash element worth more than 83p a share."
http://www.insuranceinsider.com/canopius-undeterred-by-byrne-s-partial-omega-offer
Not at the moment. From the Annual Financial Report, dated 8th April 2011 ( http://www.omegauw.com/~/media/Files/O/Omega-Insurance-Holdings/reports/oih-annual-report-2010a.pdf ) : Given the circumstances and, taking into account the interim dividend of 6.0 cents per share already paid and the substantial increase in the loss for the year compared to previous estimates, the Board has decided, as matter of prudence, not to pay a final dividend for 2010. We will keep under review the capital position and trading results with a view to resuming dividends as soon as conditions allow. As a matter of policy, the Board remains committed to paying out a substantial proportion of the Group’s annual profits as dividends.
is this share still paying one?
Omega's Japanese losses reach $24m Date: Tuesday 12 Apr 2011 LONDON (ShareCast) - Initial estimates at Omega Insurance predict an ultimate net loss of $23.6m from the Japanese earthquake and tsunami. This is based on an estimated insured market loss of $25bn. However, the international insurance and reinsurance firm noted that assessing the impact is still at a very early stage, and will be subject to revision. The group also said that its loss estimates of $7.6m and $9.5m for the Queensland floods and New Zealand earthquake, respectively, are within the previously estimated ranges of loss.
Omega Insurance Holdings Limited Guidance on Japanese Earthquake & Tsunami and Update on other 2011 First Quarter Catastrophes Omega Insurance Holdings Limited ("Omega" or the "Group") today announces an update on estimated ultimate net losses for the 2011 Queensland Floods and the 2011 New Zealand earthquake. The Group also makes an initial estimate of ultimate net losses arising from the Japanese earthquake and tsunami of 11 March 2011. Omega estimates its ultimate losses, net of reinsurance and reinstatement premiums, from the 2011 Queensland Floods and the 2011 New Zealand earthquake to be US$7.6 million and US$9.5 million, respectively. These estimates are within the previously estimated ranges of loss. Assessing the Group's ultimate net loss from its exposures to the tragic earthquake and tsunami in Japan is still at a very early stage. However, Omega estimates its ultimate loss, net of reinsurance and reinstatement premiums, to be approximately US$23.6 million, based on an estimated insured market loss of US$25 billion. There is still significant uncertainty surrounding the total market loss of this event and these estimates will be subject to revision as loss notifications are received and information becomes clearer. In addition, forgone managing agency profit commission associated with these events is approximately US$5.0 million. Previously disclosed estimates from 2010 catastrophe events remain unchanged.
http://www.investegate.co.uk/Article.aspx?id=201104120700057146E
It will be interesting to see how this develops
When you read the chairmans statement its no wonder our premiums keep heading North - I suppose the Insurance Companies always know they can recoup any previous years losses by hiking up what they demand from us and as we all need insurance we have to pay it. Chief Executive Officer's Review 2010 Results The Group is reporting a loss before tax for the year of US$42.9 million (2009: US$47.1 million profit). Clearly this is a disappointing result and one that must not be repeated. The performance was driven by the level of catastrophe and large single-risk loss events including the earthquakes in Chile and New Zealand, the explosion of the Deepwater Horizon oil rig, Australian floods and Aban Pearl submersible amongst others. This was exacerbated by rating reductions putting pressure on margins in other lines of business as the market softens, reflected in the increase in attritional loss ratios and some strengthening of reserves at the half year. The post tax loss for the year was US$42.8 million (2009: US$43.6 million profit) and earnings per share was (17.6) US cents (2009: 18.6 US cents). Gross premiums written by the Group rose by 34.0% to US$356.1 million in 2010 (2009: US$265.8 million) reflecting our increased ownership of capacity on Syndicate 958, which has grown to 40.5% for the 2011 year of account (2010: 38.8% and 2009: 16.4%). Net earned premium grew by 26.5% to US$247.4 million (2009: US$195.5 million). While this step up has negatively affected the 2010 results due to the 2010 Year of Account losses to date, we still expect to see the benefit of the increase in future years. Our underwriting performance in the year has been dominated by multiple catastrophes including the Chile and New Zealand Earthquakes, Australian hailstorms and the flooding in Queensland in December. This was on top of several large single-loss events, including the Deepwater Horizon incident in April 2010 and the sinking of the Aban Pearl submersible in May 2010. Together, these losses have cost the Group US$65.0 million net of reinsurance and reinstatement premiums and including foregone managing agency profit commission. The loss ratio rose to 84.4% in 2010 (2009: 49.3%) with natural catastrophes and major losses accounting for 22.2 percentage points. The attritional loss ratio also rose by 12.9 percentage points in comparison with 2009 to 62.2% (2009: 49.3%) demonstrating the deterioration in current pricing due to excess capacity coupled with an elevated incidence of smaller attritional losses in the US. Strengthening of prior year reserves equates to 2.4 percentage points.
I took cold feet with this when it was in the 70's - that was a wrong move! So if there is more than one interested party then the situation may hot up here - however losses this year are obviously on the cards too - if they are too great then takeover interest may dwindle.
For those interested this was the original news re take over interest. FOR IMMEDIATE RELEASE 10 January 2011 Not for release, publication or distribution in whole or in part in, into or from any jurisdiction where to do so would constitute a violation of the relevant laws or regulations of such jurisdiction. Omega Insurance Holdings Limited ("Omega" or the "Company") Statement Re Press Comment The Directors of Omega have noted the recent press comment in relation to a possible offer for the Company from Canopius Group Limited ("Canopius"). The Company confirms that it has received an unsolicited approach from Canopius proposing an offer comprising a mixture of cash and unquoted share consideration. There is no certainty that an offer will be forthcoming, nor as to the terms of any such offer. Whilst any approach which may be in shareholders' interests will be duly considered, the Board continues to build the business. The Board has consulted with Invesco Perpetual, the Company's largest shareholder, who is supportive of that position.
More bidders for Omega Date: Friday 18 Mar 2011 LONDON (ShareCast) - Shares in Omega Insurance Holdings were pushed higher by news that there are more potential bidders for insurer and reinsurer. In January, Omega said that rival Canopius Group is proposing a cash plus shares offer for the company, which moved into loss in 2010. The Japanese earthquake and other recent disasters will make 2011 tough. There was no final dividend for 2010 which meant that the total dividend fell from 12.5 cents a share to 6 cents a share. Discussions with the other potential bidders are still at an early stage.
Omega International Holdings (OIH) swung to pre-tax loss for the year ended 31st December 2010, hit by a string of natural disasters, and said short-term profitability will be affected by a challenging interest rate environment. The Lloyd's of London insurer posted a pre-tax loss of 42.9 million dollars (26.5 million pounds), which compares with a profit of 47.1 million dollars (29.1 million pounds) a year earlier. Looking ahead, the group added that, with rating pressure continuing, profit expectations for 2011 would be reduced. Shares in Omega dropped 17.37p to 83.38p.