Acquisition of RaetsMarine
AMLIN PLC
PRESS RELEASE
For immediate release
Amlin enters agreement to acquire RaetsMarine
04 March 2013
Amlin today announced it has entered into an agreement to acquire RaetsMarine, a managing general agent ranked in the top three global providers of fixed premium P&I business. Amlin has written the majority of RaetsMarine's business for the last ten years.
The acquisition is a key part of Amlin's strategy to grow its Marine business and provide its clients with a comprehensive range of marine insurance products. As an acknowledged leader in the fixed premium P&I market, RaetsMarine is well placed to exploit further growth and dislocation opportunities in the market. There continues to be an increase in the number of shipowners moving away from traditional sources of cover to seek fixed premium programmes. This growth is expected to continue with Solvency II likely to place additional capital strains on the mutual sector. In addition, Amlin will be able to leverage its existing presence in London and Singapore to attract new business to RaetsMarine.
RaetsMarine will be owned by Amlin Netherlands Holding BV and will operate as a service company under the leadership of its existing Managing Director, Folkert Strengholt. The company will report as part of Amlin Europe, led by Chief Executive, Kim Hvirgel.
The consideration is $50 million, settled in a 50:50 split between cash and new Amlin shares, with up to a further $15 million payable 24 months after completion depending on RaetsMarine's hull and cargo claims ratios for the three underwriting years up to and including 2012.
Simon Beale, Chief Underwriting Officer for Amlin plc said, "Amlin has ambitious growth plans for our global marine business and this acquisition represents a key part of our coherent international marine strategy. RaetsMarine is an established and well run business and we look forward to building on the opportunities it presents."
Folkert Strengholt, Managing Director of RaetsMarine commented "Having worked with Amlin for a decade, we look forward to becoming part of the Group. This transaction makes enormous sense as it will enable us to provide our clients with a broader marine insurance offering and to benefit further from the close working relationship we already have with Amlin".
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Notes to Editors:
RaetsMarine, established in 1993, is a specialist, niche marine underwriting agency
offering full service marine insurance solutions in marine liability (P&I and
Charterers Liability), marine property (cargo and hull) and MultiModal - Ports & Logistics
(liability and equipment of multimodal operators). The agency develops its own product ranges, handling marketing, distribution, administration, condition surveys, risk assessments and claims handling.
In 2012 RaetsMarine's premium income was US$105 million, through the operation of a distribution network of more than 450 insurance brokers worldwide. The head office of RaetsMarine is in Rotterdam. In addition RaetsMarine has branch offices in Paris, London and Singapore. RaetsMarine employs 130 people worldwide.
Amlin plc is a leading independent insurance group operating in the Lloyd's market through Amlin London and additionally in the UK, Continental European and Bermudian markets. We specialise in providing insurance cover to commercial enterprises across a broad range of risks including aviation, marine and international property & casualty. We also provide reinsurance protection to other insurance companies around the world.
Amlin Europe is a leading provider of marine, commercial property and liability insurance in the Benelux region with gross written premium of €587.2 million.
This information is provided by RNS
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