Amlin to expand Marine business with acquisition

Specialist insurance and reinsurance underwriting group Amlin on Monday announced it has entered into an agreement to acquire RaetsMarine, a managing general agent ranked in the top three global providers of fixed premium P&I business.

The group has made the $50m transaction to expand its Marine business and provide its clients with a comprehensive range of marine insurance products.

Simon Beale, the Chief Underwriting Officer for the company, said: "Amlin has ambitious growth plans for our global marine business and this acquisition represents a key part of our coherent international marine strategy. RaetsMarine is an established and well run business and we look forward to building on the opportunities it presents."

The consideration will be satisfied by $25m in cash and the rest in new Amlin shares, with up to a further $15m payable in 24 months after completion depending on RaetsMarine's hull and cargo claims ratios for the three underwriting years up to and including 2012.

RaetsMarine will be owned by Amlin Netherlands Holding and will operate as a service company as part of Amlin Europe.

The company added: "As an acknowledged leader in the fixed premium P&I market, RaetsMarine is well placed to exploit further growth and dislocation opportunities in the market. There continues to be an increase in the number of shipowners moving away from traditional sources of cover to seek fixed premium programmes.

"This growth is expected to continue with Solvency II likely to place additional capital strains on the mutual sector. In addition, Amlin will be able to leverage its existing presence in London and Singapore to attract new business to RaetsMarine."

The share price fell 1.46% to 424.90p by 09:10.

NR