Lloyd's motor insurer would boost UK business portfolio

Canopius has confirmed it is carrying out due diligence with Lloyd’s motor insurer KGM.

A spokesman said: “We can confirm that Canopius Group is currently conducting due diligence with a view to the acquisition of the business of KGM, which manages Syndicate 260 at Lloyd’s.

“Canopius is constantly evaluating opportunities that complement its underwriting portfolio and strategy, but it would be premature to make further comment until such a time that a transaction may be concluded.”

Gibraltar-based Perseverance put KGM, a specialist motor insurer, up for sale last month.

Canopius, which in March reported a £55m pre-tax profit for 2009, compared to £43m in 2008, is keen to expand its UK business portfolio.