Amlin to Acquire French Under
AMLIN PLC
PRESS RELEASE
For immediate release
7 October 2008
AMLIN TO ACQUIRE FRENCH UNDERWRITING AGENCY FROM 21 CENTRALE PARTNERS - HERALDS EUROPEAN EXPANSION
Amlin plc is pleased to announce that a wholly owned subsidiary has entered into an agreement to acquire Financière Europe Assurance (FEA), the holding company of Anglo French Underwriters SAS (AFU). The vendors are 21 Centrale Partners (the French branch of the 21 Group) and members of AFU management.
Established in 1938, AFU is Lloyd's largest approved coverholder in France, focusing on SME specialty business. Based in Paris with around 40 employees, AFU operates through a network of over 1,300 independent retail brokers and underwrites a diverse book of business including property, cargo, professional liability and specie and, in the current financial year, expects to handle approximately Euros 40 million of gross written premium.
Entry into the French market demonstrates Amlin's continuing focus on improving its distribution capabilities. The acquisition will also enable Amlin to balance the growth in its catastrophe book with the acquisition of additional non-catastrophe exposed business. This strategic business development is intended to enhance the long-term profitability of the group.
Francois Martinache, Chairman of AFU, said, 'We have worked with Amlin for many years and greatly respect their underwriting expertise. We look forward to working with Amlin in the future to enhance and develop our current product offering and to provide a platform for future growth'.
Charles Philipps, Chief Executive of Amlin, commented: 'The acquisition of AFU is a tremendous opportunity for Amlin and we look forward to continuing to work closely with our friends in France. AFU's quality management team and proven track record of bringing profitable business to Lloyd's provides an ideal strategic fit for Amlin as well as a platform to expand into the French and wider European market'.
Gérard Pluvinet and Antoine Pupin, respectively Founding Managing Partner and Managing Partner of 21 Centrale Partners declared: 'We are very pleased with the success of our collaboration with AFU over the last three years. This new partnership with Amlin marks an important step in the future development of AFU.'
The transaction is subject to the approval of Lloyd's and the Financial Services Authority, which Amlin expects to receive before the end of the year. As at 31 July 2008, FEA had gross assets of Euros 23.6 million. Following the acquisition, the consideration for which will be satisfied in cash, Amlin will own 95% of the issued share capital of FEA. The balance will be held by its management but is subject to put and call options whereby Amlin expects in due course to move to 100% ownership.
|
Enquiries: |
|
|
Charles Philipps, Chief Executive, Amlin plc |
0207 746 1000 |
|
Richard Hextall, Finance Director, Amlin plc |
0207 746 1000 |
|
Hannah Bale, Head of Communications, Amlin plc |
0207 746 1118 |
|
David Haggie, Haggie Financial Limited LLP |
0207 417 8989 / 07768 332486 |
Notes to Editors:
Amlin plc is a recognised leader in the London insurance and reinsurance market, providing a global client base with risk management solutions. Amlin has five business areas: Aviation; Marine; UK commercial; International property and casualty; and reinsurance. A FTSE-250 quoted company Amlin owns 100% of its £825m Lloyd's capacity for 2008, which is written through Syndicate 2001. Syndicate 2001 is rated 'A+' (Excellent) by AM Best and 'A1' (Stable) by Moody's.
In 2005, the company established Amlin Bermuda Ltd as a reinsurance business capitalised at US$1 billion. In 2007 Amlin Bermuda had net earned premium of £216 million and is now rated A (Excellent) by A.M. Best and A by Standard & Poor's. Amlin has also set up operations in Singapore and in Illinois, USA, in 2007 and 2008 respectively, to service regional and local clients.
www.amlin.com
Amlin has been advised by Close Brothers' Paris office.
AFU has been placing business into the Lloyd's market for over 70 years. AFU offers speciality products through a network of retail brokers in areas such as leisure, transport, jewellery and fine arts, general and professional liability, property and business interruption, events, personal accident and yacht. In 2007 AFU established a joint venture with Grupo Galilea Puig to expand the business into the Spanish market.
www.afunet.com
21 Centrale Partners is an investment firm dedicated to growth management buy-outs. 21 Centrale Partners is part of the 21 Group, an international equity investment group led by Alessandro Benetton and Gérard Pluvinet, which manages and/or advises around Euro 1 billion of assets.
This information is provided by RNS
Latest directors dealings
- 40 minutes ago Kazera Global
- 40 minutes ago Redcentric
- 2 days ago City of London Investment Group
- 2 days ago Aberdeen Group plc
- 2 days ago NATWEST GROUP