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Hurricane, boating and bloodstock insurer Amlin is expanding into Europe with a £300 million takeover.
It is buying Fortis Corporate Insurance in a deal partly funded by a placing of fresh shares to current investors.
Fortis is a property and casualty insurer in the Dutch and Belgian markets. It was acquired by the Dutch government last October as part of the nationalisation of the giant Fortis Group, which was veering towards collapse.
Amlin aims to raise £90 million from a share placing led by RBS Hoare Govett today, with the rest of the funds to come from cash sitting on the balance sheet. Amlin is primarily a Lloyd's of London insurer though it also has a small American arm.
It is the biggest UK non-life insurer and a member of the FTSE.
Chief executive Charles Philipps said the deal marks a “step change” in Amlin's structure.
The balance it gives to the group “will add further stability to our book of business”, Philipps claims.
He reckons the deal will enhance earnings immediately and hasn't ruled out further takeovers.
The present FCI management will stay in place to run the business.
Amlin shares opened today at 339p, not far from a year high, which values the company at £1.6 billion.
