- Munich Re acquires UK company MSP Underwriting Ltd. and thus a stake in Lloyd's Syndicate 318, MSF Pritchard
- Board member Peter Röder: "MSP Underwriting complements our existing portfolio perfectly. We are expanding our involvement in Lloyd’s property insurance segment.
Munich Re is acquiring the UK company MSP Underwriting Ltd. The purchase price is in the mid double-digit million euro range. MSP Underwriting Ltd. owns both the Lloyd’s managing agency Beaufort Underwriting Agency Limited, which manages the business of Lloyd’s Syndicate 318, and Lloyd’s service company Evergreen Underwriting Services Limited, through which commercial business is written. Via Beaufort, Munich Re will gain access to 47.3% of the business of Syndicate 318. Munich Re has reinsured Syndicate 318 since 2002.
The acquisition enables Munich Re to broaden its business written via Lloyd’s in lines not covered by the Watkins Syndicate, an established member of the Munich Re Group that specialises in marine insurance. Peter Röder, Munich Re Board member with sole responsibility for global clients as from 1 January 2008: "Syndicate 318 has a proven track record of actively managing the cycle and writing business profitably throughout it. We intend to continue on this successful course, for which we are counting on the longstanding experience and know-how of the Syndicate team."
Lloyd’s business is traditionally on the borderline between primary insurance and reinsurance. "Through MSP Underwriting, we will gain further access to Lloyd’s business. MSP Underwriting writes highly profitable short-tail property business and complements our existing portfolio perfectly", continued Röder. Michael Pritchard, Executive Director of MSP Underwriting, stressed: "We look forward to our collaboration with Munich Re. The acquisition by one of the world's leading reinsurers creates new strategic advantages for us. Given our excellent relationship to date, Munich Re was a preferred partner for this transaction."
MSP Underwriting focuses on international property business, but also has two smaller portfolios with commercial property and aviation insurance. The business is therefore almost exclusively of a short-tail character, i.e. with short claims settlement periods. In the financial year 2006, Syndicate 318 earned gross premiums of £137m (€197m). The Lloyd’s managing agency had a turnover of £3.5m (€5m).
The acquisition is expected to be completed by the end of the fourth quarter 2007, once the requisite approvals have been obtained from the appropriate regulatory authorities.
signed Dr. Röder signed Dr. Lawrence
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