24th Jul 2006 07:01
Lancashire Holdings Limited24 July 2006 Lancashire Holdings Limited Hamilton, Bermuda, 24 July 2006 LANCASHIRE TO SET UP COMPLEMENTARY UK PLATFORM Lancashire Holdings Limited ("Lancashire" or "the Company") today announced thatthe UK Financial Services Authority ("FSA") has notified the Company that it isminded to grant authorisation to a new underwriting company, to be calledLancashire Insurance Company (UK) Limited ("LUK"). A status of "minded to grant" from the FSA means that authorisation for LUK tocommence underwriting is likely to be granted provided certain conditions aremet, including payment of required capital, which would come from existingresources. The Company expects to satisfy the FSA's conditions by the end ofAugust 2006. LUK cannot accept risks until the FSA's conditions are satisfiedand authorisation is granted. The commencement of LUK's underwriting operations is also conditional uponobtaining a satisfactory rating from A.M. Best. LUK would be authorised to write the classes of business currently written byLancashire Insurance Company Limited ("LICL"), the Company's Bermuda Class 4Insurance subsidiary. Assuming authorisation, LUK will initially be capitalisedat £20 million (approximately US$37 million), rising to £60 million(approximately US$110 million) by 1 January 2007. LUK will enter into a quotashare agreement with LICL for a whole account cession of a percentage of riskswritten in the UK. Richard Brindle, Chief Executive Officer and Chief Underwriting Officer,commented: "While Lancashire has successfully executed its business plan from Bermudaalone, I am delighted that the FSA is minded to support our application toauthorise LUK. This authorisation, if successful, will provide the LancashireGroup with increased flexibility and access to a larger pool of quality risks.LUK will leverage existing expertise within the Group, including underwriting.There will be no change in the classes written and no change in risk profile,with no change in the senior management team. LUK will better allow us toachieve our existing business plan through enhanced management of ourunderwriting throughout the cycle." Neil McConachie, the Group Chief Financial Officer and Chief Operating Officer,commented: "We are following a path already taken by a number of Bermuda insurance andreinsurance groups. LUK does not diminish the role of LICL, our Bermudaunderwriting platform. We see the two operations as complementary. With nochange to Group capital overall, LUK will give us choice in the deployment ofcapital and improved access to our markets via authorisations throughout theEuropean Union." For further information, please contact: Lancashire Holdings +1 441 278 8950Neil McConachieGreg Lunn Financial Dynamics +44 20 7269 7200Rob BailhacheNick Henderson www.lancashire.bm About Lancashire Lancashire was established in 2005 as a new insurance and reinsurance businessto take advantage of the favourable underwriting conditions expected to arisefrom the large insured losses incurred in 2004 and 2005. The Company has an A.M.Best rating of A- (Excellent) with a stable outlook. Lancashire was admitted to AIM on 16 December 2005 following an Offer of CommonShares to investors. The Common Shares trade on AIM under the ticker symbol LRE. NOTE REGARDING FORWARD-LOOKING STATEMENTS CERTAIN STATEMENTS MADE IN THIS ANNOUNCEMENT THAT ARE NOT BASED ON CURRENT ORHISTORICAL FACTS ARE FORWARD-LOOKING IN NATURE INCLUDING, WITHOUT LIMITATION,STATEMENTS CONTAINING WORDS "BELIEVES", "ANTICIPATES", "PLANS", "PROJECTS","INTENDS", "EXPECTS", "LIKELY, "ESTIMATES", "PREDICTS", "MAY", "WILL", "SEEKS","SHOULD" OR, IN EACH CASE, THEIR NEGATIVE OR COMPARABLE TERMINOLOGY. ALLSTATEMENTS OTHER THAN STATEMENTS OF HISTORICAL FACTS INCLUDING, WITHOUTLIMITATION, THOSE REGARDING THE GROUP'S PROSPECTS, GROWTH, BUSINESS STRATEGY,AND PLANS AND OBJECTIVES RELATING TO THE GROUP'S INSURANCE BUSINESSES ANDPLATFORMS ARE FORWARD-LOOKING STATEMENTS. SUCH FORWARD-LOOKING STATEMENTSINVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES, REGULATORY AND RATING AGENCYCONDITIONS AND OTHER IMPORTANT FACTORS, SOME OF WHICH ARE OUTSIDE OF THE GROUP'SCONTROL, THAT COULD CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THEGROUP TO BE MATERIALLY DIFFERENT FROM FUTURE RESULTS, PERFORMANCE ORACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. THESEFORWARD-LOOKING STATEMENTS SPEAK ONLY AS AT THE DATE OF THIS ANNOUNCEMENT OROTHER INFORMATION CONCERNED. LANCASHIRE HOLDINGS LIMITED EXPRESSLY DISCLAIMS ANYOBLIGATION OR UNDERTAKING (SAVE AS REQUIRED TO COMPLY WITH ANY LEGAL ORREGULATORY OBLIGATIONS, INCLUDING THE AIM RULES) TO DISSEMINATE ANY UPDATES ORREVISIONS TO ANY FORWARD-LOOKING STATEMENTS CONTAINED HEREIN TO REFLECT ANYCHANGES IN THE GROUP'S EXPECTATIONS WITH REGARD THERETO OR ANY CHANGE IN EVENTS,CONDITIONS OR CIRCUMSTANCES ON WHICH ANY SUCH STATEMENT IS BASED. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Lancashire Holdings