Syndicate 958 Names agreed to sell their capacity

Omega has increased its stake in Lloyd’s Syndicate 958 after individual Names agreed to sell their capacity in the group. The capacity offer, which closed on 1 July, resulted in approximately £45.7m of capacity, which represents about 21.9% of the outstanding capacity of Syndicate 958 not already owned by Omega. This equates to 18.3% of all outstanding capacity on Syndicate 958.

The majority of members opted for the cash alternative of about £40.4m of capacity. The consideration payable under the cash offer is 40p in cash per £1 of capacity. Other members chose to receive new common shares of $0.10 each under the share offer, in respect of about £5.4m of capacity.

“Part of our thinking was that these individual members would be reassessing their own personal risk appetite and investment approaches at a time when they would be seeing a decline in their general assets. So it struck us there would be a considerable chunk of names looking to exit. The take-up of 18% is one with which we are delighted,” said chief executive of Omega, Richard Tolliday.