Confirming earlier reports (See IJ Website April 26), Connecticut-based W. R. Berkley Corp. announced that it has agreed to increase its ownership in U.K.-based Kiln plc, a leading Lloyd’s insurer, to 20.1 percent.
Spelling out the exact terms of the transaction, which must have the prior approval of Kiln’s shareholders, Berkley explained that its subsidiary, Berkley Insurance Company (BIC), had acquired approximately 5 percent of Kiln in February 2002,and has now “agreed to purchase approximately 36.1 million additional shares of Kiln at 47 pence per share [$0.684] or approximately (pound) 17 million (approximately $25 million at today’s exchange rate) from Kiln’s offering of approximately 101.3 million shares. The purchase price reflects a 13.8% discount to Kiln’s closing price of 54.5 pence [$0.79.3] per share on April 24, 2002, the day prior to BIC’s subscription.”
Upon the deal’s completion BIC will become the largest shareholder in Kiln and will have the right, subject to the terms of an agreement between BIC and Kiln, to appoint up to two directors to Kiln’s Board.
The announcement indicated that” BIC and its affiliate, Admiral Insurance Company, previously have entered into qualifying quota share reinsurance agreements with Kiln for the 2002 year of account providing a 20% quota share of Lloyd’s Syndicate 510’s capacity of (pound)388.6 million [$565 million] and a 30% quota share of Lloyd’s Syndicate 1204’s capacity of (pound)28 million [$40 million], respectively.”
Berkley’s Chairman and CEO William R. Berkley stated that, “Kiln has an outstanding team of seasoned people with enormous expertise in the Lloyd’s market. Expanding our relationship with Kiln plc will allow us to benefit from their knowledge of the London marketplace.”|”w.r.berkley, confirms, increased, stake, in, lloyd’s, kiln
Was this article valuable?
Here are more articles you may enjoy.