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Beazley has dual aim for £150m cash call
Hugo Duncan13 Feb 2009
Lloyd's insurer Beazley today launched plans to raise £150 million from shareholders to fund a takeover in the US and cash in on improving business conditions.
It also became the latest firm to quit the UK and register in Ireland “to bring the group's corporation tax rate down in a stable tax environment”.
Chief executive Andrew Horton said the move would see corporation tax fall from the 28% levied in the UK to as low as 18%. Beazley reported a 69% slump in profits to £41 million for 2008. It was hit by hurricane losses, while investment returns fell “as a consequence of the ongoing credit crisis and turbulence in investment markets”.
However, Horton said there were now opportunities for Beazley to grab market share from struggling rivals, and charge higher premiums.
He added that the rights issue would fund expansion of its Lloyd's operations as well as the $35.4 million (£24.5 million) takeover of US insurer First State Management.
