Last checked at 26 Nov 2012 07:00
26 November 2012
Hampden Underwriting plc
("Hampden Underwriting" or the "Company")
Acquisition of corporate member
Hampden Underwriting plc, which provides investors with a limited liability direct investment into the Lloyd's insurance market, announces that, following a similar acquisition last month, it has acquired a further corporate member of Lloyd's for a consideration of £0.5 million in cash. The 2012 underwriting capacity of the corporate member acquired (Nameco (No. 229) Limited) is £0.9 million; this compares with Hampden Underwriting's 2012 capacity of £11.0 million. Nameco (No. 229) Limited participates in a spread of Lloyd's syndicates similar to Hampden Underwriting's own participation.
The Company is evaluating a number of other acquisition opportunities and expects to announce a further acquisition in the near future. In light of these opportunities, the Board has decided for the time being to conserve the Company's cash to fund further growth rather than initiate the payment of dividends. However, it remains the Board's intention to pay dividends in the future.
Commenting upon this acquisition, Nigel Hanbury, the Company's Chief Executive Officer, said:
"We are pleased to have made this acquisition of another corporate member which further increases our underwriting capacity. This is in line with our stated strategy of acquiring corporate members as suitable opportunities arise and we continue to evaluate other potential acquisitions."
For further information please contact:
| ||
Hampden Underwriting
| Nigel Hanbury | nigel.hanbury@hampdenplc.com |
Smith & Williamson Corporate Finance
| David Jones | 020 7131 4000 |
Additional information
NameCo (No. 229) Limited ("NameCo 229") is a corporate member of Lloyd's which the Company has acquired from Peter Nutting, William Nutting, Rupert Nutting and Amanda Thornton. Nameco 229 is advised by Hampden Agencies Limited and, in the year ended 31 December 2011, made a loss before tax of £(0.1) million on gross premiums written of £0.8 million and had net assets of £0.3 million at that date. Hampden Underwriting expects to contribute an estimated further £0.1 million in cash to its funds at Lloyd's to support the Company's enlarged underwriting activities.