Member's Agency to be Sold to CBS Insurance
Amlin PLC
27 January 2000
AMLIN PLC ('AMLIN') TO SELL MEMBER'S AGENCY TO CBS INSURANCE HOLDINGS PLC
('CBS') FOR £6.5 MILLION
Amlin and CBS have entered into a non-binding Heads of Agreement for the sale
of Amlin's members' agency business, Amlin Private Capital Limited and
associated companies (Murray Lawrence Members Agency Limited, Murray Lawrence
(Underwriting Agents) Limited, SBW Insurance Research Limited, BMA Members
Agency Limited, Onahau Limited and Stace Barr Holdings Limited), to CBS for an
estimated cash consideration of £6.5 million, payable on completion. The
consideration payable is net of dividends payable by the members agencies,
before completion, of approximately £1.0 million and represents a goodwill
premium of £2.5 million to adjusted net assets at completion. Amlin will
retain the right to receive the profit commission receivable in respect of its
member's agency activities up to and including the 2000 year of account. In
the year to 31 December 1999 Amlin's members' agency business is expected to
contribute pre tax profits of £2.0 million to the Amlin Group.
The proceeds of sale will be used to develop Amlin's core underwriting
businesses. The sale is subject to Lloyd's and other regulatory approvals.
Completion of the transaction is expected by 29 February 2000 and will be
announced in due course.
Commenting on the sale, Amlin Chief Executive Charles Philipps said:
'The sale of Amlin Private Capital completes the divestment of our non-core
businesses and allows us to focus exclusively on our insurance underwriting
core. We were keen to achieve a fair value and to give the members agency
business the best chance of succeeding under independent ownership. With CBS,
I believe we have achieved both.'
Charles Harbord-Hamond, Managing Director of CBS, commented:
'This acquisition fulfils part of our strategy to enhance the earnings of CBS
Insurance Holdings and strengthen the position of Names.'
Enquiries:
Amlin plc - Charles Philipps, Chief Executive 0171 860 8222
- Richard Hextall, Finance Director 0171 860 8916
CBS - Charles Harbord-Hamond, Managing 0171 658 4500
Director
- Michael Watson, Finance Director 0171 658 4500
Haggie Financial Ltd - David Haggie 0171 417 8989
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