Germany domiciled reinsurance giant Hannover Re reportedly paid £142.5 million to acquire UK holding firm Argenta Holdings, according to a recent heraldscotland.com article.
The acquisition of Argenta Holdings, the owner of managing agent Argenta Syndicate Management, Argenta Private Capital, and a pro rata share of the Lloyd’s syndicate Argenta Syndicate 2121, was announced earlier this month, and reports now claim that the reinsurer paid £142.5 million for the deal.
According to the report Chairman of Argenta, Alasdair Locke, is to receive £64 million from the transaction as he held a 45% stake in the company. Furthermore, a reported 60 of the company’s 160 staff are to receive a share of £35.6 million from the sale, after Locke put 25% of the shares in the firm into an employee trust to benefit Argenta staff.
Discussing the established employee trust, Locke said; “The benefits are widely spread, the people at the top will have more than the people at the bottom, but a lot of them will do very well out of it, and that was always the idea. I believe in looking after people, I believe if you look after your staff, they’ll look after you and it’s a win-win for everybody.”
Initial reports of the deal failed to disclose a purchase price, but according to heraldscotland.com the amount totalled £142.5 million.
“It’s great to take [what was] a bust business, rebuilding it and getting it to robust health. In the insurance world it is all about capital, and it’s a hugely regulated industry. I had taken in a long way, and I could see what needed to be done, but I was pleased it went to such a good home, because it would have required a lot more investment to push it further forward,” said Locke.