Bermuda-based Hamilton Insurance Group has agreed to acquire the Pembroke Managing Agency platform at Lloyd’s and Ironshore Europe DAC (IEDAC) from Liberty Mutual Group for an undisclosed price.

Pina Albo

Image: Pina Albo, CEO, Hamilton Insurance Group. Photo: courtesy of Hamilton Insurance Group, Ltd.

Hamilton Insurance expects the acquisition of the two businesses to nearly double its total premium base.

Pembroke Managing Agency, through Syndicate 4000 at Lloyd’s, underwrites a portfolio of specialty insurance products that include financial institutions, global property and professional liability.

IEDAC, which was formed in 2010 in Ireland by Ironshore, is authorized to write business across the EEA. The company holds licenses to write business as a (re)insurer in various countries.

The insurance and reinsurance provider said that the complementary profile of Pembroke and IEDAC’s business will fast track its efforts to establish a leadership position in specialty insurance and also its ability to grow its reinsurance franchise.

IEDAC is said to give flexibility and strategic optionality for the Bermuda-based insurer, especially with regard to its growth initiatives for Europe and the US.

Hamilton Insurance CEO Pina Albo said: “Given our objective of building a global, diversified specialty insurance and reinsurance organization, our agreement with Liberty is a meaningful step towards achieving that goal.

“In addition to the opportunities this transaction presents at Lloyd’s, in Europe and in the US, we will bring together talented teams who are aligned on culture, underwriting discipline and a commitment to providing superior customer service. The result will be a company well-positioned to respond to our clients’ and the market’s needs.”

As per the agreement terms, Hamilton Insurance will manage the 2019 Year of Account for Syndicate 4000 while Liberty Mutual will retain the corporate member for prior years.

For the US-based Liberty Mutual, the sale of Pembroke Managing Agency and IEDAC follows the conclusion of a strategic review.

The company said that Liberty Specialty Markets, through its Syndicate 4472, will continue to serve the Lloyd’s market. Liberty Specialty Markets, which offers specialty and commercial insurance and reinsurance products, will also continue to serve the market via its other company platforms.

Liberty Specialty Markets president Matthew Moore said: “For Liberty, the transaction supports our International specialty business by eliminating the multiple Lloyd’s Syndicates and business overlap that resulted from Liberty Mutual’s acquisition of Ironshore.

“Clarifying our operations – including selling Pembroke and focusing on our Lloyd’s Syndicate 4472 – makes it easier for brokers and customers to partner with us to meet their risk management needs.”

The transaction, which will be subject to customary closing conditions and regulatory approvals, is anticipated to be completed later this year.

In December 2016, Liberty Mutual signed a deal worth about $3bn to acquire property and casualty insurer Ironshore from Fosun International.