W.R. Berkley will up its share in Lloyd’s insurer Kiln to 20 percent by acquiring 32.8 million newly offered shares in the company at 47 pence (68 cents) and the acceptance of a two-for-three rights issue at the same price.
Kiln announced earlier this week that it plans to raise £50 million ($72.5 million) in additional capital to offset a £10.6 million ($15.4 million) loss last year. The WTC attacks were primarily responsible, costing the company an estimated £18 million ($26 million).
By providing over half of the anticipated funds Berkley will occupy a prominent place in one of Lloyd’s major syndicates and managing agents. Kiln’s syndicate 501 has £389 million ($564 million), already up 46 percent from last year. The company also is the managing agent for £530 million ($768.5 million) in capacity.
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