Hamilton to double premiums with Pembroke & Ironshore Europe acquisition

Hamilton Insurance Group, the Bermuda based insurance and reinsurance holding company, has lined up considerable growth for itself, by agreeing an acquisition of Liberty Mutual’s managing agency at Lloyd’s Pembroke and its Ironshore Europe DAC operation.

Hamilton has been expansive in recent years, having already established itself as a leading player in global reinsurance with Hamilton Re and at Lloyd’s with its Hamilton Underwriting Limited business, as well as its third-party capital and insurance-linked securities (ILS) ventures of the Turing Re collateralised sidecar and recently launched Hamilton Capital Partners unit.

Today the company has announced that it has signed a definitive agreement with Liberty Mutual Group to acquire the Pembroke Managing Agency Limited business at Lloyd’s and the Ironshore Europe DAC operations.

It’s a significant deal, as it will almost double Hamilton’s total premium base when the transaction closes and the company believes these businesses have a complementary profile to Hamilton’s existing operation.

The acquisition, “accelerates the Company’s goal of establishing a leadership position in specialty insurance and its ability to expand its reinsurance franchise,” Hamilton said today.

“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,” explained Hamilton CEO Pina Albo.

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

Acquiring Dublin-based carrier Ironshore Europe DAC also provides Hamilton with further optionality, particularly as it provides another underwriting platform to help drive growth in Europe and the U.S.

Hamilton said it will remain responsible for the 2019 Year of Account for Syndicate 4000, while Liberty will retain the corporate member for prior years.

For the third-party capital partners that are working with Hamilton Insurance Group, this near doubling of premium base promises to provide even more risk that could be shared with investors, if the company so chooses.

Hamilton seems set on making best use of third-party capital and ILS structures when it can and sees investors as natural partners for its underwriting business.

Hence, the growth the business is set to achieve after this acquisition will flow through into increased opportunities for investors to work with the firm as it continues to expand its platforms.

TigerRisk Capital Markets & Advisory advised Hamilton on the acquisition and Debevoise & Plimpton LLP provided legal advice.