13th Dec 2019 12:46
(Alliance News) - Helios Underwriting PLC on Friday said it has acquired Lloyd's of London insurance market member Catbang 926 Ltd for GBP5.6 million cash.
Helios is a specialist insurer which buys and sells Lloyd's of London insurance syndicates, a group of companies, or underwriters, who join together to insure very high-valued property or high-hazard liability exposures.
The acquisition consideration comprises an initial payment of GBP2 million on completion and the balance paid within 60 days of completion.
Helios said the acquisition value represents a 16% discount to the GBP6.7 million valuation of Catbang and is around GBP600,000 below the value of assets being bought.
The company said the transaction would enable it to continue to build its participations on the better syndicates at Lloyd's.
In the year ended December 31, 2018, Catbang made a pretax profit of GBP200,000 on gross premiums of GBP3.6 million. The 2019 underwriting capacity of Catbang is GBP4.1 million.
In addition to the Catbang transaction, Helios said it will continue to pursue more Lloyd's acquisitions in line with its strategy.
Shares in Helios were untraded on Friday in London last quoted at 132 pence per share.
By Ife Taiwo; [email protected]
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