The Board of Hardy, a major specialist Lloyd’s insurer, announced that it proposes to move the Group’s corporate domicile to Bermuda “in order to improve the Group’s strategic positioning in the global insurance and reinsurance market.”
Hardy’s Directors described the decision as representing “an important complementary market to London.” They also indicated that “the Group will be better placed to deliver its longer term plan if it is able to access the Bermuda insurance market and develops a platform for underwriting third party business there.”
With Hardy’s arrival, Bermuda will look even more like EC3 (the City of London postal area that includes Lloyd’s and many other insurers and brokers). The Group joins Catlin and Hiscox as an old-line Lloyd’s company, as well as ACE, XL and a host of newer companies who are headquartered on the island. Kiln is also in the process of moving to Bermuda (go to: https://www.insurancejournal.com/news/international/2007/04/05/78487.htm).
“In order to facilitate this move, there will be a corporate reorganization involving the establishment of a new Bermuda based holding company, Hardy Underwriting Bermuda Limited, which will acquire via a scheme of arrangement, Hardy Underwriting Group plc,” the announcement explained. “A listing for the shares of Hardy Underwriting Bermuda Limited will be sought on the London Stock Exchange and shareholders of Hardy Underwriting Group plc will become shareholders in Hardy Underwriting Bermuda Limited in the same proportions as they own Hardy at the relevant time.”
The redomiciliation and establishment of Hardy’s presence in Bermuda will be done in two distinct phases as follows:
Phase 1: as part of the reorganization referred to above, Hardy Re will be established as a Class 3 reinsurer to underwrite a quota share reinsurance of Hardy Underwriting Limited. The Board expects that the authorization for Hardy Re to conduct business will be granted by the BMA in order for Hardy Re to begin underwriting in the first half of 2008; in principle approval of its business plan was received from the BMA on 14 November 2007; and
Phase 2: during the next 18 months, subject to market conditions, Hardy intends to set up a further wholly owned subsidiary to function as a man (the City of London postaging general agent. This company is expected to underwrite third party business via a binding authority on behalf of Hardy’s managed syndicates 382 and 38Twenty.
Hardy’s Chairman David Mann commented: “This is an exciting time for Hardy and its shareholders. This reorganization is a key development for the Group and represents a measured step towards delivering our longer term strategic plan. The redomiciliation and establishment of a Class 3 reinsurer is only being undertaken on the basis that there will be a second phase to develop third party business.
” We believe that, market conditions permitting, we will be underwriting new business in approximately 18 months time.”
Source: Hardy – www.hardygroup.co.uk
Topics Underwriting Reinsurance London
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