Wellington Underwriting is raising £15.6m by selling more than six million new shares and five million existing shares of 10p each, to support the continued expansion of its business at Lloyd's.
The company has a 46% holding in syndicate 2020, which was recently given approval to increase its capacity by 28% to £640m for the 2002 year of account. This would increase Wellington's participation to £295m.
A Wellington spokesman said the expansion was due to an improved rating environment and increases in business. In the first half of 2001, average increases of more than 20% were being recorded by the firm.
The increased capacity will be used to expand Wellington's aviation, personal accident and medical expenses book, and to increase the growth of the company's wholly-owned US subsidiary.
There are also plans for the formation of a new UK commercial lines team.
Barton, who is also a director of the General Insurance Standards Council (GISC), is already a non-executive director of Hammerson, Sherwood International and WH Smith.
Wellington chairman John Maxwell said the company was “delighted and honoured” that Barton had agreed to join its board. “He will bring a wealth of financial and insurance industry experience,” he said.
