Fairfax To Sell Lloyd’s Agency Business To Advent Capital

July 4, 2000

According to published reports U.K. based Advent Capital (Holdings) Plc, whose subsidiaries manage a number of Lloyd’s syndicates, has agreed with Canada’s Fairfax Financial Holdings Ltd. to acquire Fairfax’ subsidiary Kingsmead Underwriting Agency Ltd., a managing agent in the Lloyd’s market.

Financial terms of the acquisition were not disclosed, but Fairfax will reportedly become a major shareholder of Advent, and has also agreed to support Advent’s underwriting activities with a £110 million ($167 million) letter of credit.

If the acquisition is approved by Lloyd’s, Advent would have funds at Lloyd’s of approximately $142 million ($216 million) through two principle managing agents, Kingsmead and B.F. Caudle Agencies. Their combined underwriting capacity would be around, £300 million ($ 456 million).

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