Wellington Underwriting has announced plans to raise £120m
through a placing and open offer of new shares.
The offer will be at 58pence and Wellington has signalled its intent to invest £76.1m of the proceeds in increasing its stake in Exali Reinsurance Holdings, the holding company of Wellington Reinsurance Ltd.
Wellington plans to use the remaining proceeds to strengthen its financial base and support increased participation in Syndicate 2020 for the 2003 year of account.
Wellington is placing 62m shares and offering a further 144m on a 20-for-39 basis via an open offer.
Chief Executive Julian Avery said: "This new fund raising is a further strong endorsement of the Wellington franchise... Wellington is now better positioned to exploit buoyant market conditions and generate improved returns for its shareholders."
