The Board of Amlin today confirmed it is in discussions about a possible recommended...

The Board of Amlin today confirmed it is in discussions about a possible recommended offer for Chaucer.

Amlin said it believes there is a very strong rationale for a combination of the two businesses. The directors of Lloyd's insurer Amlin said:

• It would create, by some margin, the leading independent insurer operating in the Lloyd's market.
• There is a strong business fit between the two groups. Chaucer would add strength and depth to a number of classes of business in which Amlin is already a leader and would also bring into the Amlin Group a number of complementary business lines in areas such as aviation, energy, specialist motor and property.
• The combined group would hold a leading market position in each major area of commercial insurance and reinsurance.
• Amlin and Chaucer share a quality approach to underwriting and are culturally similar which should enable a relatively straightforward integration process.
• A combination of the two groups would offer substantial synergies through economies of scale.

Amlin said a programme of mutual due diligence and management meetings is underway. A further update to shareholders will follow finalisation of due diligence and documentation which is expected to be concluded during July.

Amlin said: “This announcement does not represent a firm intention by Amlin to make an offer for the purposes of the City Code on Takeovers and Mergers. There can be no certainty that an offer will ultimately be made.”

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