UK-based specialist insurer Amlin plc announced that a wholly owned subsidiary has entered into an agreement to acquire Lead Yacht Underwriters Limited from members of Lead Yacht’s board of directors. The transaction remains subject to the approval of the change of control by the Financial Services Authority.
The acquisition is the second in less than a week for Amlin, which announced the completion of the acquisition of J R Clare Underwriting Agencies Limited (JCUA) from John Clare.
Lead Yacht was established in 1997, and is based in London. It is an underwriting agency and “world-wide leader in the provision of super-yacht insurance,” said Amlin. “The company underwrites through an exclusive network of insurance brokers and in the current financial year expects to handle approximately US$34 million of gross written premiums of which Amlin initially intends to underwrite approximately one third. As at 31 May 2010, the date of the company’s latest audited accounts, Lead Yacht had gross assets of approximately £6.4 million [$10.18 million].”
Amlin’s announcement also explained that the acquisition provides it with the “opportunity to acquire a first-class niche underwriting agency with an unrivalled reputation in its market and an excellent track record of underwriting profitability.”
In addition the bulletin noted that Lead Yacht’s business “complements Amlin’s existing yacht portfolio, which is focused predominantly on smaller yachts. The move also demonstrates Amlin’s continuing focus on further diversifying its underwriting portfolio to better balance its overall risk exposures and thereby enhance the Group’s long term profitability.”
Amlin’s Chief Executive Charles Philipps commented: “The acquisition of Lead Yacht is a tremendous opportunity for Amlin to build on the success of its existing yacht business through growth into the super-yacht class. Lead Yacht is a proven leader in its field and its quality management team, led by Allan Norton, and specialist underwriting knowledge will provide Amlin with an excellent platform from which to develop this business in the future”.
Allan Norton, Managing Director of Lead Yacht, added: “This is an exciting milestone for our company and provides an opportunity to enhance our product offering to our panel of brokers and clients. We believe this partnership gives us a strong platform for continued growth”.
Source: Amlin plc
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