BRIT Insurance Holdings PLC, a leading participant in the Lloyd’s market, announced plans to raise around £204million ($316 million) through a rights offering.
The company plans on using the funds to increase its capitalization and capacity to underwrite more business in what most analysts are now calling a rapidly expanding market. In fact the Lloyd’s market seems to be attracting a lot of interest these days.
Another Lloyd’s insurer, Hiscox plc, announced plans earlier this month to raise £100 million (155 million), and last Friday Warren Buffet’s Berkshire Hathaway agreed to increase the underwriting capacity of Trenwick Group’s Syndicate 839 by an additional $93 million. (See IJ website Sept. 20). Berkshire will also support an additional $119 million increase in capacity via a “qualifying quota share reinsurance facility.”
BRIT may also need the funds to cover the now chronic problem of falling investment values. The company reported an interim 2002 operating loss of £3.7 million ($5.74 million), compared with a £2.1 million ($3.26 million) operating profit a year ago. In a familiar pattern the company at the same time announced that gross written premiums had reached £397 million for the same period, a 94% increase compared to 2001.
Topics Excess Surplus Lloyd's
Was this article valuable?
Here are more articles you may enjoy.
New York Regulates Consumer Litigation Financing 
MAPFRE Accuses AAA of Violating Long-Time Exclusive Marketing Agreement 
Howden US Tells Judge Brown & Brown Employees Fled Due to ‘Mistreatment’ 
’60 Minutes’ Homeowners Ask Court to Force DFS to Divulge Heritage Probe Info 
