Dutch/Belgian marine, liability and property insurer bought

Amlin is to buy Fortis Corporate Insurance (FCI) from the State of the Netherlands for €350m, raising funds through a share issue worth 5% of its share capital.

Amlin said FCI is a leading provider of corporate property and casualty insurance and risk management solutions in the Netherlands and Belgium. Headquartered in Amstelveen, the Netherlands, the Company also has offices in Rotterdam, Antwerp, Brussels and Paris.

In the Netherlands, which represented 63% of gross written premiums in 2008, FCI targets the co-insurance market. Amlin said it is the market leader in Dutch marine insurance, and holds a top three position in liability and commercial property insurance. In Belgium, representing 36% of GWP, FCI is the market leader in marine and commercial property insurance and a top three provider of liability insurance, Amlin said.

Key Acquisition highlights

  • Establishes a substantial Continental European platform, providing Amlin with immediate scale in a key strategic market and opportunities for future expansion
  • Positions Amlin as a leading provider of marine, liability and commercial property insurance in the Netherlands and Belgium
  • Expected to enhance earnings and return on equity (“ROE”) in 2009 and to contribute to Amlin’s cross cycle target ROE of at least 15%
  • Diversifies Amlin’s portfolio in terms of geography, customer base, business lines and distribution
  • Enhances Amlin’s overall business mix by increasing the proportion of commercial lines insurance
  • Introduces an experienced management team to lead further European growth
  • Increases the scale of the Group’s investment activities and presents scope for significant reinsurance synergies
  • Enlarged Group will retain capital strength and flexibility for further profitable expansion where market conditions are favourable

Stock market announcement.

Amlin also announced a placing of 23,502,567 ordinary shares of 28.125 pence representing approximately 5% of Amlin's issued ordinary share capital with institutional investors.

The Placing is not conditional on the closing of the Acquisition.

The Placing will be effected by way of an accelerated bookbuild to be carried out by RBS Hoare Govett Limited.