View this article online: https://www.insurancejournal.com/news/international/2004/06/23/43529.htm
The Toronto-based RS Group of Companies, Inc. (RSGC), formerly Rent Shield Corp., a provider of pass-through risk specialty insurance and reinsurance products, announced that it has completed the purchase of 49 percent of the issued share capital of Dashwood Brewer & Phipps Ltd., Lloyd’s and London Market Insurance Brokers.
RSGC said it expects to receive more than $4 million annually in minority income as a result of this acquisition.
The acquisition of an interest in Dashwood “will effectively provide RS Group of Companies a conduit to recapture brokerage expenses on placements of insurance related to its business operations, including its recently launched residential rental guarantee program,” said the announcement.
Under the terms of the deal, RSGC has agreed to place insurance in the London and Lloyd’s markets through Dashwood. As consideration for the purchase, RSGC will pay Dashwood £1,475,450 ($2.71 billion) which will be funded by brokerage commissions earned by Dashwood from insurance placed by RSGC.
RSGC said the equity position would enable it to effectively recover 49 percent of the estimated $8 million of brokerage expenses on business it expects to place through Dashwood.
The bulletin described Dashwood as “a highly respected, consistently profitable Lloyd’s and London Market Insurance Broker based in London, England that was established over 70 years ago. The company maintains an international presence and has broad expertise in numerous product lines including marine, automobile, credit and aviation. Currently, the dynamic of the Company is one of considerable expansion and the Company anticipates substantially increasing its premiums.”
Commenting on the announcement, RSGC CEO John Hamilton sated, “This acquisition will provide RS Group of Companies with another lucrative value-added vertical fit for its pass-through risk specialty insurance and reinsurance products. Dashwood will have the ability to provide underwriting support for RSGC’s products through its established and highly regarded network within the London and Lloyd’s markets.”