Beazley has unveiled its intention to raise £105m through a Rights Issue to support the acquisition of Omaha Property and Casualty Insurance and increase its stake in its existing underwriting business at Lloyds.
Beazley intends to distribute up to 131,134,252 new ordinary shares at 84p per share on the basis of four new ordinary shares for every seven existing ordinary shares.
The £105m raised from the sale will pay for an increased stake from 54% to 70% in its underwriting business at Lloyd's in 2005.
The company said the acquisition of Omaha Property and Casualty Insurance would enhance its net asset per share, and increase full year dividend payouts to no less than 1p per share for 2004 and no less than 4p per share
for 2005.
Beazley chief executive Andrew Beazley said: "The acquisition of a US admitted lines insurer would accelerate Beazley's access to exciting business opportunities throughout the region.
“The proposed Rights Issue allows Beazley to benefit immediately from the increased share we have obtained for 2005 in the group's continuing underwriting activities at Lloyd's and secures the group's capital requirements for the foreseeable future."
The Rights Issue is conditional upon, among other factors, shareholder approval which will be sought at a company extraordinary general meeting to be held on 17 November 2004.
