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Member, Beacon International Group, Ltd.
LONDON—A consortium said Monday that it has agreed to buy the London businesses of Singapore-based insurance investment business Whittington Group Pte.
The consortium—comprising London-based runoff consolidator Tawa P.L.C.; Oslo, Norway-based protection and indemnity club Assuranceforeningen Skuld; and Hamilton, Bermuda-based insurance and reinsurance holding company Paraline Group P.L.C.—will acquire Whittington Insurance Markets Ltd. and its subsidiaries.
Those subsidiaries include Whittington Capital Management Ltd., which provides turnkey managing agency services to syndicates at Lloyd's of London. Turnkey syndicates are managed by third parties on behalf of capacity providers.
Terms of the deal were not disclosed.
The deal, which is subject to approval by the U.K. Financial Services Authority and Lloyd's, is expected to close in 90 days, according to the consortium.
In a statement, Whittington CEO Anthony Holbrow said the deal would enable Whittington to focus on developing its business in Asia.
“The fact that there was such attention from so many parties at every stage of this transaction demonstrates yet again the perennial attraction of the Lloyd's platform. At one point, over a dozen parties expressed an interest,” said Ivor Edwards, partner in the corporate insurance team at London-based law firm Clyde & Co. L.L.P. who advised on the deal, in a statement.
“The combination in this transaction of both ongoing revenues and a channel to future market start-ups makes it unusually powerful, especially with Lloyd's reluctant to allow startups that do not have the support of an established turnkey managing agency,” he said.