Last checked at 17 Oct 2013 07:00
17 October 2013
Hampden Underwriting plc
("Hampden Underwriting" or the "Company")
Exchange of Contracts in respect of the Acquisition of a Lloyd's Limited Liability Vehicle
Hampden Underwriting announces that, in line with its strategy of increasing underwriting capacity through acquisition, it has exchanged contracts in respect of a further acquisition of a limited liability member of Lloyd's ("LLV") for a total consideration of £2.6 million in cash. The assets of the LLV acquired (Nameco (No 804) Limited) include associated funds at Lloyd's to support its underwriting activities of £1.6 million. The 2013 underwriting capacity of the LLV acquired is £1.5 million; this compares with Hampden Underwriting's 2013 capacity of £14.4 million following the recently announced acquisitions of Nomina No 035 LLP and Nomina No 342 LLP. Following completion, which is subject to change of control consent from Lloyd's and which is anticipated to take place within 32 days of this announcement, the Company will be able to reduce its aggregate funds at Lloyd's by an estimated £0.7 million. 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.
Commenting upon the acquisition, Nigel Hanbury, the Company's Chief Executive Officer, said: "We are pleased to have made this further acquisition which further increases our underwriting capacity. This is in line with our stated strategy of acquiring corporate members as suitable opportunities arise."
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 804) Limited is a limited liability member of Lloyd's which the Company has acquired from Dominique Christian Montier; it is advised by Hampden Agencies Limited and, in the year ended 31 December 2012, made a profit before tax of £0.3 million on gross premiums written of £1.5 million and had net assets of £1.9 million at that date.
About Hampden Underwriting plc
Hampden Underwriting plc has been incorporated primarily to provide a limited liability direct investment into the Lloyd's insurance market. Hampden Underwriting plc is quoted on the London Stock Exchange's AIM market (ticker: HUW). For further information please visit www.hampdenplc.com.