Bermuda-based Omega Insurance Holdings said it had received a takeover approach from rival Canopius.
Privately-owned Canopius has offered 65p per share in cash for the entire issued share capital of Omega.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The news did little to excite investors, with Omega's share price rising 0.4% in early trading on Tuesday.
Omega had a tough 2011, doubling its pre-tax losses and cancelling its dividend.
In March it reported losses before tax of $94.7m compared to a loss of $42.9m the previous year, on an income of $304.6m (2010: $356.1m) and net revenues of $257m (2010: $261.4m).
It was hit by a leap in the number of claims made, particularly after the earthquakes in Japan and New Zealand.
Catastrophe losses at the firm totalled $85.6m (2010: $55.0m).
It wasn't all bad news, however, as basic earnings per share rose from 17.6 cents to 36.5c, while cash levels jumped from $37.9m to $52.8m.
-
Will UK inflation rise ahead of BoE meeting?August’s inflation report will be published at 7am on Wednesday, 17 September, one day before the Bank of England’s next rate-setting meeting
-
Thousands of savers with £250k pensions take cash over tax-free money and IHT fearsWith a record £70 billion withdrawn from pensions in the year to March, experts are concerned savers are making knee-jerk decisions without advice that could affect their long term wealth
