Establishment of UK Platform
Lancashire Holdings Limited
24 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 that
the UK Financial Services Authority ('FSA') has notified the Company that it is
minded to grant authorisation to a new underwriting company, to be called
Lancashire Insurance Company (UK) Limited ('LUK').
A status of 'minded to grant' from the FSA means that authorisation for LUK to
commence underwriting is likely to be granted provided certain conditions are
met, including payment of required capital, which would come from existing
resources. The Company expects to satisfy the FSA's conditions by the end of
August 2006. LUK cannot accept risks until the FSA's conditions are satisfied
and authorisation is granted.
The commencement of LUK's underwriting operations is also conditional upon
obtaining a satisfactory rating from A.M. Best.
LUK would be authorised to write the classes of business currently written by
Lancashire Insurance Company Limited ('LICL'), the Company's Bermuda Class 4
Insurance subsidiary. Assuming authorisation, LUK will initially be capitalised
at £20 million (approximately US$37 million), rising to £60 million
(approximately US$110 million) by 1 January 2007. LUK will enter into a quota
share agreement with LICL for a whole account cession of a percentage of risks
written in the UK.
Richard Brindle, Chief Executive Officer and Chief Underwriting Officer,
commented:
'While Lancashire has successfully executed its business plan from Bermuda
alone, I am delighted that the FSA is minded to support our application to
authorise LUK. This authorisation, if successful, will provide the Lancashire
Group 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 to
achieve our existing business plan through enhanced management of our
underwriting 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 and
reinsurance groups. LUK does not diminish the role of LICL, our Bermuda
underwriting platform. We see the two operations as complementary. With no
change to Group capital overall, LUK will give us choice in the deployment of
capital and improved access to our markets via authorisations throughout the
European Union.'
For further information, please contact:
Lancashire Holdings +1 441 278 8950
Neil McConachie
Greg Lunn
Financial Dynamics +44 20 7269 7200
Rob Bailhache
Nick Henderson
www.lancashire.bm
About Lancashire
Lancashire was established in 2005 as a new insurance and reinsurance business
to take advantage of the favourable underwriting conditions expected to arise
from 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 Common
Shares 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 OR
HISTORICAL 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. ALL
STATEMENTS OTHER THAN STATEMENTS OF HISTORICAL FACTS INCLUDING, WITHOUT
LIMITATION, THOSE REGARDING THE GROUP'S PROSPECTS, GROWTH, BUSINESS STRATEGY,
AND PLANS AND OBJECTIVES RELATING TO THE GROUP'S INSURANCE BUSINESSES AND
PLATFORMS ARE FORWARD-LOOKING STATEMENTS. SUCH FORWARD-LOOKING STATEMENTS
INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES, REGULATORY AND RATING AGENCY
CONDITIONS AND OTHER IMPORTANT FACTORS, SOME OF WHICH ARE OUTSIDE OF THE GROUP'S
CONTROL, THAT COULD CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE
GROUP TO BE MATERIALLY DIFFERENT FROM FUTURE RESULTS, PERFORMANCE OR
ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. THESE
FORWARD-LOOKING STATEMENTS SPEAK ONLY AS AT THE DATE OF THIS ANNOUNCEMENT OR
OTHER INFORMATION CONCERNED. LANCASHIRE HOLDINGS LIMITED EXPRESSLY DISCLAIMS ANY
OBLIGATION OR UNDERTAKING (SAVE AS REQUIRED TO COMPLY WITH ANY LEGAL OR
REGULATORY OBLIGATIONS, INCLUDING THE AIM RULES) TO DISSEMINATE ANY UPDATES OR
REVISIONS TO ANY FORWARD-LOOKING STATEMENTS CONTAINED HEREIN TO REFLECT ANY
CHANGES 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
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