Hamilton to Buy Pembroke Managing Agency, Ironshore Europe DAC from Liberty Mutual

March 14, 2019

Hamilton Insurance Group Ltd., the Bermuda-based holding company of re/insurance operations in Bermuda and at Lloyd’s, announced it has signed a definitive agreement with Liberty Mutual Group to acquire the Pembroke Managing Agency Ltd. platform at Lloyd’s and Ironshore Europe DAC (IEDAC).

Financial details of the deal, which is subject to regulatory approval, were not disclosed. It is expected to close later this year.

After a strategic review, Liberty Mutual said it decided to sell the businesses, which were acquired through the purchase of Ironshore in May 2017. Liberty Specialty Markets said it will continue to serve the Lloyd’s market through its Syndicate 4472.

“For Liberty, the transaction supports our International specialty business by eliminating the multiple Lloyd’s syndicates and business overlap that resulted from Liberty Mutual’s acquisition of Ironshore,” noted Matthew Moore, president, Liberty Specialty Markets. “Clarifying our operations – including selling Pembroke and focusing on our Lloyd’s Syndicate 4472 – makes it easier for brokers and customers to partner with us to meet their risk management needs.”

Hamilton said the transaction will almost double its total premium base. The complementary profile of Pembroke and IEDAC’s business both accelerates the Hamilton’s goal of establishing a leadership position in specialty insurance and its ability to expand its reinsurance franchise, Hamilton added.

Dublin-based insurer IEDAC provides flexibility and strategic options for Hamilton, particularly with respect to its growth initiatives in Europe and the U.S., Hamilton continued.

“Given our objective of building a global, diversified specialty insurance and reinsurance organization, our agreement with Liberty is a meaningful step towards achieving that goal,” said Hamilton CEO Pina Albo.

“In addition to the opportunities this transaction presents at Lloyd’s, in Europe and in the U.S., we will bring together talented teams who are aligned on culture, underwriting discipline and a commitment to providing superior customer service,” she added. “The result will be a company well-positioned to respond to our clients’ and the market’s needs.”

Under the terms of the definitive agreement, Hamilton will be responsible for the 2019 year of account for Syndicate 4000 and Liberty will retain the corporate member for prior years.

IEDAC was formed in 2010 by Ironshore, while Pembroke Managing Agency was formed in 2004. IEDAC is authorized to write business throughout the EEA and has licenses to write business as a re/insurer in a number of other countries worldwide. Pembroke Syndicate 4000 underwrites a portfolio of specialty insurance products including financial institutions, global property and professional liability.

Liberty’s Syndicate 4472 is the third largest syndicate at Lloyd’s, offering coverages such as aviation, casualty, construction, contingency, cyber, marine, energy, equine, financial lines, fine art & specie, legal indemnities, personal accident, political violence, professional indemnity, property, specialty binders, surety, and war & terrorism.

TigerRisk Capital Markets & Advisory served as financial adviser and Debevoise & Plimpton LLP served as legal adviser to Hamilton. Liberty Mutual’s financial adviser was Evercore, while Skadden, Arps, Slate, Meagher & Flom LLP acted as legal adviser.

Source: Hamilton Insurance Group Ltd.

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