Further to the announcement made on 7 August 2013, the board of directors (the “Board”) of Lancashire Holdings Limited (“Lancashire” or the “Company”) is pleased to announce that it has completed the acquisition of the entire issued share capital of Cathedral Capital Limited (“Cathedral”) (the “Acquisition”). The aggregate consideration was £266m.
Cathedral is an established specialty (re)insurance provider that operates exclusively in the Lloyd’s insurance market and writes insurance and reinsurance business in property, aviation, satellite, marine cargo and contingency classes. The Acquisition will provide Lancashire with a platform at Lloyd’s, the world’s leading specialist insurance market. Specifically, Lancashire has gained Cathedral Underwriting Limited, a managing agency which manages two Lloyd’s syndicates, Cathedral Syndicates 2010 and 3010.
Commenting on the Acquisition, Lancashire’s Chief Executive Officer, Richard Brindle, said:
"We are delighted to have completed the Acquisition of Cathedral, and thanks are due to the teams at both Lancashire and Cathedral, as well as their advisers, who have worked so efficiently to get this done. The quality of the Cathedral business and people, and the complementary fit of the portfolios makes the Acquisition a compelling opportunity to move the Lancashire model forward. A presence in Lloyd’s adds a third proposition for our clients and brokers and which, together with our London and Bermuda rated company markets and Kinesis, our collateralised third party capital initiative, means we can cater to all kinds of requirements. The Lancashire, Cathedral and Kinesis teams have already begun to work closely and harmoniously together, and we’re excited about the future of the enlarged group."
Commenting on the Acquisition, Cathedral’s Chief Executive Officer, Peter Scales, said:
"We are also delighted that the Acquisition has completed. Although our immediate focus is on our customers and brokers as we enter our main renewal season, in the short period since the deal was announced we are starting to really appreciate the possibilities going forward that the combined resources of the three trading platforms can bring. Accordingly, we are looking forward to working with Lancashire and Kinesis to develop the enlarged Lancashire group, and I believe that we have the mixture of talents and a structure to tackle the market effectively now and in future."