LONDON (Alliance News) - Charles Taylor PLC, which provides professional services to the insurance market, Friday said it will issue new shares to make two acquisitions that will enable it to offer managing agency services to new syndicates at Lloyds.
"These acquisitions enable Charles Taylor to offer managing agency services to new syndicates at Lloyd's on a 'turnkey' basis subject to regulatory approval by Lloyd's, the Prudential Regulatory Authority and the Financial Conduct Authority," said the company.
A managing agent is a company set up to manage one or more syndicates, on behalf of the members who provide the capital, and new syndicates are often established under a 'turnkey' model, where an existing managing agent establishes and manages the syndicate on behalf of third party capital providers, said Charles Taylor.
Charles Taylor has acquired a 50.1% stake in Almond One Ltd and a 100% stake in Almond Two Ltd. The company acquired the stakes from The Standard Club, and Charles Taylor said the deals are part of its strategy to expand its insurance-related professional services business.
The Standard Club is a mutual insurance association that insures shipowners, operators and charters for their liabilities.
The managing agency's first client is anticipated to be The Standard Club's planned new syndicate 1884, said Charles Taylor.
The company purchased both stakes for a combined GBP6.3 million, which has been paid by Charles Taylor issuing 2.5 million shares, equating to 252 pence per share, a price based on the 30-day average to February 16, the company said.
Charles Taylor shares were trading up 1.9% Friday morning at 265.00 pence per share.
"Subject to the managing agency gaining regulatory approval in the first half of 2015, these acquisitions are in aggregate expected to be modestly earnings-enhancing in the current year," said Charles Taylor.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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