Amlin pays Eur350m for Fortis Corporate Insurance
The latest purchase will strengthen the Lloyd's
insurer's presence in continental Europe
Lloyd's of London insurer Amlin has
announced a placing of 23.5 million shares to help finance
its
Eur350 million purchase of Fortis Corporate Insurance
(FCI) from the Dutch government.
Amlin says it expects the acquisition to be earnings
and return on equity enhancing in 2009 and beyond, and
will position the group as a leading provider of marine,
liability and commercial property insurance in the Netherlands
and Belgium.
FCI provides corporate property and casualty insurance
and risk management services in both countries. The
company has its headquartered at Amstelveen in the Netherlands
and also has offices in Rotterdam, Antwerp, Brussels
and Paris.
Commenting on the deal, analyst Tom Dorner at Oriel
Securities said: ''Amlin has for some time expressed
a desire to make an acquisition and acquired AFU in
France during 2008. The acquisition will provide Amlin
with a strong European presence and diversification
away from catastrophe reinsurance.
''FCI was loss making in 2008 so a key question will
be whether Amlin are able to turn around FCI's operations.
Amlin has a strong track record for delivering sector
leading underwriting results, so on first impressions
one has to be hopeful that they will be able to achieve
this.''
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