CGNU announced that it intends to exit the Lloyd’s market, and is selling its Marlborough Underwriting Agency to the Berkshire Hathaway Group for an undisclosed amount.
Berkshire subsidiary GeneralCologne Re already participates in the Lloyd’s market, and the acquisition of Marlborough will strengthen its presence. The company has applied to Lloyd’s regulators for approval to take over providing capacity for Marlborough managed syndicates.
According to a report from Reuters, CGNU plans to write off £448 million ($650 million) before taxes, and amend its results for the period ended September 30th because of its exit from the market and associated reinsurance protection
The acquisition is in line with Chairman Warren Buffet’s announced intentions to seek investment opportunities in the U.K.
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