The Competition Commission (CC) has provisionally cleared the acquisition of the members' agency business CBS Private
Capital Limited (CBSPC)by fellow agency Hampden Agencies Ltd (HAL).
In its provisional findings report, the CC provisionally concluded that the acquisition was not expected to result in a "substantial lessening of competition" in relation to the supply of members' agency services to members of
Lloyd's in the UK.
Group Chairman Robert Turgoose, said: "Competition between CBSPC and HAL was limited prior to the merger, customers did not switch between providers in large numbers nor are they particularly price sensitive. There is also a remaining presence of another competitor, Argenta.
"We also realize that CBSPC's parent company was under significant pressure to sell the members' agency business of CBSPC, and that the number of individual members at Lloyd's, who are the customers for these services, has fallen significantly over recent years, so a reduction in the number of providers was likely irrespective of this merger."
Prior to the acquisition, both HAL and CBSPC provided members' agency services to members of Lloyd's.
Members' agents provide advice to members in relation to
their underwriting activity, which includes analysis on syndicate participation and monitoring of syndicate performance.
