Amlin Corporate Services Ltd, a wholly owned subsidiary of Amlin plc, Wednesday completed its purchase of J R Clare Underwriting Agencies Ltd (JCUA) from John Clare. JCUA is a managing general agent which sources approximately £30 million of UK household and commercial insurance premium income. Under the terms of the deal, Amlin UK would underwrite 100 per cent of JCUA’s business going forward.
For slightly more than a decade now, JCUA has been successfully sourcing business for London Market underwriters. But even so, the firm has run into trouble lately, lacking sufficient funds to continue funding its operations and satisfy the FSA’s solvency requirements. However, Amlin believes the JCUA investment will add attractive new business in an area where premium pricing is rising and would be in the interests of JCUA’s employees, policyholders and creditors.
Amlin plc is a UK-based specialist insurer. For Amlin, the acquisition of the managing general agent which sources approximately £30 million of UK household and commercial insurance premium income will greatly bolster its operations and portfolio.
Amlin said it had been in close contact with the FSA through the course of the transaction and the change of control has been approved by the FSA. As of the end of December 2009, JCUA had gross assets of £3.2 million including £1.5 million of cash held on behalf of insurers.
Amlin is a leading independent insurer operating in the Lloyd’s, UK, Continental Europe and Bermudian markets. The firm specializes in providing insurance cover to commercial enterprises and provides reinsurance protection to other insurance companies around the world.
Amlin is listed on the London Stock Exchange and is owned by a broad set of institutional and private investors. 2009 was a record year for Amlin, as well as one of significant strategic progress. The Group made a profit before tax of £509.1 million and, after tax, this was equivalent to a return on equity of 37.0%. Group net assets increased by 31.0% in 2009 to £1,593.1 million.
The firm’s management and employees are committed to building Amlin as a successful insurer which delivers a high quality of service to its clients and is capable of delivering superior returns to shareholders, said the firm. The investment comes as part of the firm’s strategic UK growth and expansion plans.