LONDON (Alliance News) - Hampden Underwriting PLC Thursday said it has acquired another limited liability member, Nameco (No. 804) Limited, at Lloyd's of London in a GBP2.6 million cash deal.
The acquisition is the latest in a spate of activity by Hampden, as it seeks to increase its underwriting capacity, which before its latest acquisition stood at GBP14.4 million.
Hampden, which provides a limited liability direct investment into the Lloyd's insurance market, acquired Nameco (No. 804) from Dominique Christian Montier. The new acquisition made a GBP300,000 pretax profit on gross written premiums of GBP1.5 million in the year to December 31, 2012.
Nameco (No. 804)'s assets include associated funds at Lloyd's to support its underwriting activities of GBP1.6 million. Its 2013 underwriting capacity is GBP1.5 million, and Hampden expects the acquisition's completion in the next 32 days, as it is subject to consent from Lloyd's.
Hampden said the acquisition should enable it to reduce its aggregate funds kept at Lloyd's against insurance claims by an estimated GBP700,000.
"The LLV acquired participates in a spread of Lloyd's syndicates similar to Hampden Underwriting's own participation. It is anticipated that this LLV will be included in the company's collateralised quota share reinsurance arrangement for the 2014 year of account," the company said in a statement.
Hampden Underwriting's collateralised quota share reinsurance arrangement was announced on July 26 and ceded 50% of the company's 2013 insurance exposure to reinsurance. That agreement freed up GBP4.1 million, or approximately half, of the company's funds at Lloyd's for reinvestment in "new opportunities".
The agreement was renewed for 2014 on Tuesday.
Hampden Underwriting shares were Thursday quoted up 0.4% at 130.5 pence.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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