Omega Underwriting has announced a fully underwritten placing to raise £90m to set up a new ...
Omega Underwriting has said it is to set up a new Bermuda insurer and reinsurer, Omega Speciality Insurance Company.
The company announced a fully underwritten placing to raise £90m for the start-up and to support Syndicate 958. Most of Omega's business to date has involved acting as a Lloyd's managing agent of the syndicate, for which it earns fees and profit commission.
The company said it will seek approval from the Bermuda Monetary Authority to underwrite a portfolio of predominantly short-tail lines of business.
It added that Omega Specialty will use a proportion of its capital to support Omega's share of Syndicate 958's capacity, by providing bank letters of credit.
In a statement, Omega said approval has been received to increase Syndicate 958's capacity from £225m for the 2005 year of account to £250m for 2006, and Omega's own direct support for the syndicate will increase next year.
It said hurricanes Katrina, Rita and Wilma will have a negligible effect on its earnings for 2005. Rita and Wilma are estimated to generate only modest net costs to Syndicate 958.
