Insurance provider Amlin has taken the decision to withdraw its interest in rival Chaucer, citing as the reason that it was not the best option for its shareholder value.
Amlin made a bid for Lloyd’s insurer Chaucer valued at just under GBP200 million last month but, having reviewed its target, it has now decided that the purchase is not in the best interest of its shareholders.
If completed, the deal would have created the largest independent insurer on the Lloyd’s of London market. However, in explaining its u-turn, Amlin said: Having completed its review of Chaucer, Amlin has concluded that sufficient value for its shareholders could not be created by proceeding with a transaction.
Having pulled out of the purchase, Amlin is now expected to return the capital it would have used to buy Chaucer to shareholders in the form of a dividend or a share buy-back. Meanwhile, the company has retained the right to submit an offer if a third party announces its intention to make an approach for Chaucer at any time in the next six months.