Last checked at 15 Oct 2013 07:00
15 October 2013
Hampden Underwriting plc
("Hampden Underwriting" or the "Company")
Renewal of XL Reinsurance Arrangement
and Acquisition of Lloyd's Limited Liability Vehicles
Annual Renewal of Reinsurance Arrangement
Hampden Underwriting plc (AIM:HUW) announces that, as expected, the annually renewable collateralised quota share reinsurance agreement commencing for the 2013 year of account and which was announced on 26 July 2013 has been formally renewed for the 2014 year of account.
Acquisition of Lloyd's Limited Liability Vehicles
Hampden Underwriting also announces that, in line with its strategy of increasing underwriting capacity through acquisition, it has acquired two further limited liability members of Lloyd's ("LLVs") for a total consideration of £0.7 million in cash. The 2013 underwriting capacity of the LLVs acquired (Nomina No 035 LLP and Nomina No 342 LLP) is £1.7 million in total; this compares with Hampden Underwriting's 2013 capacity of £12.8 million. The Company will contribute a further £0.6 million to its funds at Lloyd's to support its enlarged underwriting activities. The LLVs acquired participate in a spread of Lloyd's syndicates similar to Hampden Underwriting's own participation. It is anticipated that these two LLVs will be included in the above reinsurance arrangement for the 2014 year of account.
Commenting, Nigel Hanbury, the Company's Chief Executive Officer, said:
"We are pleased to have made these acquisitions which further increase our underwriting capacity. This is in line with our stated strategy of acquiring corporate members as suitable opportunities arise. The quota share reinsurance arrangement is an important part of our broader funding strategy going forward, enhancing our ability to actively grow our underwriting capacity and pursue further acquisitions. It is therefore pleasing that this important first renewal has been effected."
For further information please contact:
| ||
Hampden Underwriting
| Nigel Hanbury | nigel.hanbury@hampdenplc.com |
Smith & Williamson Corporate Finance
| David Jones | 020 7131 4000 |
Additional information
Nomina No 035 LLP is a limited liability member of Lloyd's; it is advised by Hampden Agencies Limited and, in the year ended 31 December 2012, made a profit before tax of £(0.06) million on gross premiums written of £0.7 million and had net assets of £0.03 million at that date. Nomina No 342 LLP is a limited liability member of Lloyd's; it is advised by Hampden Agencies Limited and, in the year ended 31 December 2012, made a profit before tax of £0.05 million on gross premiums written of £0.7 million and had net assets of £0.02 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.