Hampden Underwriting Plc Acquisition of Corporate Member (7019Q)

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RNS Number : 7019Q

Hampden Underwriting Plc

17 October 2013

Hampden Underwriting plc

("Hampden Underwriting" or the "Company")

Exchange of Contracts in respect of the Acquisition of a Lloyd's Limited Liability Vehicle

Hampden Underwriting announces that, in line with its strategy of increasing underwriting capacity through acquisition, it has exchanged contracts in respect of a further acquisition of a limited liability member of Lloyd's ("LLV") for a total consideration of GBP2.6 million in cash. The assets of the LLV acquired (Nameco (No 804) Limited) include associated funds at Lloyd's to support its underwriting activities of GBP1.6 million. The 2013 underwriting capacity of the LLV acquired is GBP1.5 million; this compares with Hampden Underwriting's 2013 capacity of GBP14.4 million following the recently announced acquisitions of Nomina No 035 LLP and Nomina No 342 LLP. Following completion, which is subject to change of control consent from Lloyd's and which is anticipated to take place within 32 days of this announcement, the Company will be able to reduce its aggregate funds at Lloyd's by an estimated GBP0.7 million. The LLV acquired participates in a spread of Lloyd's syndicates similar to Hampden Underwriting's own participation. It is anticipated that this LLV will be included in the Company's collateralised quota share reinsurance arrangement for the 2014 year of account.

Commenting upon the acquisition, Nigel Hanbury, the Company's Chief Executive Officer, said: "We are pleased to have made this further acquisition which further increases our underwriting capacity. This is in line with our stated strategy of acquiring corporate members as suitable opportunities arise."

 
 For further information please contact: 
 Hampden Underwriting            Nigel Hanbury    nigel.hanbury@hampdenplc.com 
 Smith & Williamson Corporate 
  Finance                        David Jones      020 7131 4000

Additional information

Nameco (No 804) Limited is a limited liability member of Lloyd's which the Company has acquired from Dominique Christian Montier; it is advised by Hampden Agencies Limited and, in the year ended 31 December 2012, made a profit before tax of GBP0.3 million on gross premiums written of GBP1.5 million and had net assets of GBP1.9 million at that date.

About Hampden Underwriting plc

Hampden Underwriting plc has been incorporated primarily to provide a limited liability direct investment into the Lloyd's insurance market. Hampden Underwriting plc is quoted on the London Stock Exchange's AIM market (ticker: HUW). For further information please visit www.hampdenplc.com.

This information is provided by RNS

The company news service from the London Stock Exchange

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