Talbot Holdings has announced that agreement has been reached...

Talbot Holdings has announced that agreement has been reached with Validus Holdings on the terms of the sale of 100% of the share capital of Talbot.

The sale is conditional on regulatory approvals from the FSA, the Corporation of Lloyd’s and the Bermuda Monetary Authority.

Validus, which is based in Bermuda, is a global provider of property catastrophe and other, primarily short-tail, lines of reinsurance through its wholly-owned subsidiary Validus Reinsurance.

Talbot will be the Validus group’s principal operation in the direct insurance market and Talbot’s Syndicate 1183 will form its primary point of access to the London Market.

A statement said: "It is intended that the business should continue trading in the Lloyd’s market through Talbot Underwriting and through URSL, and no significant change is envisaged in the scope or scale of its activities, or to its underwriting and administrative teams. As part of the transaction, Talbot’s employees will be acquiring significant holdings of Validus shares."

Commenting on the sale, Michael Carpenter, Talbot’s Chief Executive, said: “From the outset of our discussions with Validus, it has been clear that the two organisations have highly complementary business models and compatible underwriting philosophies. We both focus on short-tail business, with a disciplined approach to individual risk selection and cycle management.

"We are looking forward to joining forces with Ed Noonan and his senior team in creating an even stronger business with an excellent balance between the core Bermudian and Lloyd’s operations."

Talbot is the Bermudan parent of the specialty insurance group operating within the Lloyd’s insurance market through Syndicate 1183 and through Underwriting Risk Services (URSL).

Lexicon Partners acted as financial adviser to Talbot’s shareholders in relation to the sale.