Barbican wants to merge with Omega, keep Lloyd's syndicates separate

LONDON—London-based Barbican Group Holdings Ltd., which operates a Lloyd’s of London syndicate, said Monday that it has approached Bermuda-based Omega Insurance Holdings Ltd. about a possible merger.

Barbican said it believed that combining the insurers would create capital and operational efficiencies.

In a statement, Barbican said that while “there is no certainty that a transaction will be forthcoming,” its plan would maintain Omega’s listing on the London Stock Exchange and both groups’ syndicates would remain in operation.

Barbican’s multiline syndicate 1955 at Lloyd’s has stamp capacity of £180 million ($292.1 million) for this year.

Omega operates syndicate 958 at Lloyd’s and writes predominantly short-tail property insurance and reinsurance for small to midsize buyers.

Omega also operates a U.S. specialty reinsurer, Schaumburg, Ill.-based Omega U.S. Insurance Inc., and a Cologne, Germany-based coverholder, Omega Europe GmbH.

Barbican’s offer is the latest proposal concerning Omega. In March, Omega said it had fielded several purchase offers since receiving an unsolicited offer from Guernsey-based Canopius Group Ltd. in January.

In May, Novae Group P.L.C. said it was conducting due diligence on a possible merger with Omega.