Shareholders in Lancashire Holdings, a global provider of specialty insurance and reinsurance products and a third-party reinsurance capital management firm, have approved its proposed acquisition of Cathedral Capital Limited, a privately owned Lloyd’s insurer.
With the approval of this acquisition, Lancashire adds access to risks from the Lloyd’s market to its specialist platform, gaining two Lloyd’s syndicates, Cathedral Syndicates 2010 and 3010, and access to a platform focused on short-tail lines of business, an area Lancashire has said it intends to focus both in underwriting with its own capital and third-party capital.
Lancashire, which recently launched its newly branded third-party and alternative reinsurance capital management platform Kinesis Capital Management, gains scale in its existing lines of business, new sources of capital (including third-party via Lloyd’s Names that participate in the Syndicates) and a chance to build organic growth opportunities with the acquisition.
Third-party investors in the Kinesis Capital division will benefit from access to a broader risk selection platform for Kinesis, which once launched should offer a highly diversified specialty reinsurance investment opportunity.
Martin Thomas, the Chairman of Lancashire’s board of directors, commented; “The board is pleased with our shareholders’ strong support for the proposed acquisition of Cathedral. This is a rare opportunity to acquire a high-quality Lloyd’s business with short-tail focus, strong business model fit and robust underwriting performance. The acquisition will create value for Lancashire’s shareholders at a time of change in the market. It strengthens and diversifies Lancashire’s core underwriting business and we expect the Cathedral team will enhance Lancashire’s competitive positioning.”
Richard Brindle, Lancashire’s Chief Executive Officer, added; “The acquisition of Cathedral represents an exciting and welcome addition to the Lancashire Group. Cathedral is an ideal partner for Lancashire, being a well-respected and well-run business within the Lloyd’s market that will complement Lancashire’s existing underwriting base. I am very much looking forward to working with the Cathedral team to enhance the enlarged group’s business and performance for the long term.”
The completion of the acquisition is subject to the relevant regulatory approvals.
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