Insurance Australia Group Limited (IAG) announced that it has acquired a newly-formed Lloyd’s managing agency and specialist Asian syndicate, Alba Group Pte Limited, to “support the development and management of its expanding Asian business.”
CEO Michael Hawker commented: “Acquiring Alba puts us in a strong position to leverage the reinsurance opportunities presented as we continue to execute our strategy to build a portfolio of Asian assets, as well as managing the risks inherent in these. In addition, the syndicate would enable IAG to add value through providing reinsurance support to its new Asian subsidiaries and partners.”
IAG’s CEO of Asset Management & Reinsurance, Jan van der Schalk, who has responsibility for the new business, indicated that it has both a very experienced team in the region and the infrastructure to support it. He noted that the “key personnel in the underwriting team, which will be based in Singapore, and the managing agency, have an average of 20 years’ experience in the insurance market, with the underwriters having spent a number of years underwriting Asian risks for international insurers.
“Alba operates through a newly formed Lloyd’s syndicate, the first multi-line syndicate dedicated to Asian business,” van der Schalk continued. “The syndicate has access to all markets in which Lloyd’s is licensed, covering more than 70 countries worldwide. Of particular relevance to IAG is Lloyd’s capacity to underwrite business in the Asian region via its extensive network.”
IAG said it would “provide the majority of the capital to support the syndicate, in conjunction with Whittington Group, the underwriters and the management team. While the terms of the acquisition are confidential, the businesses have all been newly established and neither the purchase price nor the capital required in the first two years is material to the Group.”
Lloyd’s President, Asia-Pacific, Tony Egerton indicated: “The Lloyd’s Asia platform is becoming increasingly significant to the regional specialist insurance market, and we are delighted to welcome another new Lloyd’s syndicate to the region. The fact that such a major insurance player has shown significant commitment to Lloyd’s shows the market’s current strength and the wealth of opportunity it can offer through its renowned brand and worldwide network.”
IAG is acquiring ALBA from Whittington Group Pte Limited, an international insurance investment and service business headquartered in Singapore “with,” said the announcement, “a long history in Lloyd’s of London and international insurance markets. It is dedicated to providing bespoke and innovative outsource, investment and exit solutions to the insurance industry.”
The terms of the acquisition are subject to final regulatory approval from the Singaporean MAS and the UK FSA, the prudential regulatory authorities for this business.
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