Euclidian property and marine business threatened
Euclidian underwriters face an uncertain future after sources close to the insurer confirmed that it would be merged with rival Lloyd's managing agent Marlborough.
Insurance Times exclusively revealed last month that Euclidian was considering a merger with Marlborough.
This week a source close to Euclidian confirmed that the deal would “definitely” happen after Berkshire Hathaway, the owner of Marlborough, “exercised its right” to buy Euclidian.
A source close to Capital Insurance Holdings, owner of Euclidian, said the merger was “not a done deal”, but that the two insurers were “likely” to merge.
The source added that as part of the deal, Euclidian underwriters would be asked to present their current business plans to the new management for assessment. It is understood that, although Marlborough is keen on developing Euclidian's personal lines and energy business, the future for Euclidian's property and marine underwriters is uncertain.
Both Marlborough and Capital declined to comment on the future for Euclidian staff. But a source close to Capital said Euclidian's management was trying to ensure that all of the staff were “embraced” within the new set-up.
Earlier this year, a £125m float of Capital was abandoned after the company failed to raise sufficient capital from UK fund managers.