Omni Whittington Group has bought PXRe Managing Agency and its Lloyd's syndicate for less than £1m.
The company, which specialises in insurance services and distressed emerging market debt, purchased PXRe this week. Its managing agency, Omni Whittington Capital Management (OWCM), will now handle the affairs of its run-off syndicate 1224.
The PXRe agency and syndicate were formed at the end of 1996 with a capacity of £35m and capitalised by PXRe group, a Bermudan specialist reinsurer. During the third quarter of 2000, it stopped accepting new or renewal risks at Lloyd's due to costs from operating in London and because “the business written there lacked the quality and diversification that PXRe had hoped to achieve”.
Omni Whittington's chief executive officer Tony Hobrow said: “Taking the agency and syndicate as a package offers a real exit to the previous owners.
“This is a pleasing development for us as it is our first syndicate run-off since announcing our intention to dedicate OWCM to run-off management.”
Omni Whittington's insurance services division provides insurance company management and run-off administration. It acquires solvent businesses in run-off, start-up services in Lloyd's and the Company Market, claims settlement, reinsurance recoveries and consultancy services.
The acquisitions, subject to regulatory approvals in the UK and Bermuda, will expand Enstar's focus on managing insurance and reinsurance companies in run-off.