Group will own over a third of the capacity of syndicate 958
Omega is set to increase its ownership of its Lloyd’s syndicate after members of the syndicate agreed to sell their capacity to the group.
The Bermudan insurance group said it had has received valid acceptances in respect of approximately £45.7 million of capacity, representing approximately 21.9 per cent. of the outstanding capacity on Syndicate 958 not already owned by the Company
This followed a capacity offer to members of the syndicate, which closed on 1 July.
As a result of the capacity offer, Omega will own and provide capital support to 34.7 per cent of the total capacity on Syndicate 958 for the 2010 and each subsequent year of account
Members of the syndicate elected to receive new common shares of $0.10 each under a share offer in respect of approximately £5.4 million of capacity. Members elected to receive cash under a cash alternative offer in respect of approximately £40.4 million of capacity.
Richard Tolliday, Omega chief executive, said: “We are delighted with the take up of the capacity offer which allows Omega to increase its ownership of the highly successful Syndicate 958 to over one third of the total capacity.
“The results of the capacity offer have provided clarity and certainty with regard to the required capital provision for the Syndicate for 2010, which is beneficial to both the syndicate and the Omega group. This comes at a time when there continue to be attractive opportunities for the deployment of capital to expand our business within our core areas of experience, particularly the continued development of Omega Specialty in Bermuda and Omega US.”
Tolliday added: “As stated at the time of the capacity offer, the market conditions in Omega’s core lines of business have shown a hardening of rates and increasing demand which we expect to continue throughout 2009 and into 2010. We will update the market on our plans for all our operations at the time of our interim results on 27 August 2009.”