The UK’s Amlin plc announced it has entered into an agreement to acquire RaetsMarine, a managing general agent it said is ranked in the top three global providers of fixed premium marine liability protection and indemnity (P&I) business.
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.
Amlin said the acquisition is part of its strategy to grow its marine business.
“There continues to be an increase in the number of ship owners moving away from traditional sources of cover provided by P&I mutuals to seek fixed premium programs,” said the company. “This growth is expected to continue with Solvency II likely to place additional capital strains on the mutual sector.”
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.
Amlin said that it has written the majority of RaetsMarine’s business for the last 10 years.
Source: Amlin plc