Chaucer Holdings Acquiring PXRE’s Lloyd’s Syndicate

Chaucer Holdings PLC, a leading Lloyd’s specialist insurer, announced that it has signed an agreement with PXRE Reinsurance Company to acquire its wholly owned subsidiary, PXRE Limited, which provides all the capital for Syndicate 1224.

The bulletin explained that “Syndicate 1224, which ceased underwriting in the 2000 year of account, will close into Chaucer’s Syndicate 1084, subject to the agreement of the reinsurance to close.”

Chaucer said it had “acquired the whole of the issued share capital of PXRE Limited for a nominal sum,” and will pay some “additional consideration to PXRE Reinsurance Company for taxation benefits derived from utilising PXRE Limited’s existing tax losses. The transaction includes reinsurance arrangements to ensure no erosion of PXRE Limited’s net assets from its exposure to 2000 and prior years of account underwriting.”

Chaucer’s bulletin explained that the transaction “provides PXRE with an orderly exit from Lloyd’s,” which has approved the transaction.

Chaucer CEO Ewen Gilmour commented: “This transaction fits with Chaucer’s strategy of developing additional income streams from syndicate management and closure for third parties. It builds on our underwriting and managing agency competencies, providing diversification and balance to the Group’s underwriting interests.”