24th Oct 2014 07:08
LONDON (Alliance News) - Amlin PLC Friday said it has increased its stake in Leadenhall Capital Partners LLP, an investment manager in insurance- and reinsurance-linked securities, to 75%, from 40%.
In a statement, the FTSE 250 insurer said it made a partial acquisition of each individual partner?s stake in Leadenhall, with the final amount paid to be determined by the business's future profitability. It will be payable in three instalments over the period to May 2016.
"We have already developed significant synergies between Leadenhall Capital Partners and Amlin?s reinsurance business, which have helped to differentiate Amlin?s (re)insurance client proposition from its competitors, as well as strengthening LCP?s market position. As alternative capital plays a greater role in (re)insurance markets, I expect Amlin?s increased interest in LCP to be a valuable strategic advantage to both businesses," Amlin Chief Executive Charles Philipps said in a statement.
The transaction is not subject to any conditions, regulatory or otherwise, Amlin said.
The remaining 25% interest which Amlin is not acquiring will continue to be held by Leadenhall's individual partners, with the existing management team of Chairman John Wells and Chief Executive Luca Albertini remaining in their existing roles.
"The combination of independent capital markets skills with the power and reach of a major (re)insurer has proved an attractive proposition for investors, which is capable of delivering good returns. This agreement provides a stable platform for further growth, while maintaining the independence of investment decision making and a strong alignment between the management team and our investors," Wells said.
Investment decisions for third party capital will continue to be made independently of Amlin.
By Samuel Agini; [email protected]; @samuelagini
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