Helios Underwriting, the Lloyd’s of London investment and underwriting vehicle, has acquired Lloyd’s Member Catbang 926 Limited for £5.6 million.
The move, intended to increase underwriting capacity through acquisition, will see Helios pay £2 million of the total acquisition price on completion and the balance paid within 60 days of completion.
Catbang participates in a spread of Lloyd’s syndicates and has a 2019 underwriting capacity of £4.1 million.
Helios has described Catbang’s participation as broadly matching its own existing portfolio of that deal them to continue building participations on the better syndicates at Lloyd’s.
The consideration represents a discount of approximately 16% to the independent valuation of £6.7 million placed on Catbang by Humphrey’s and is approximately £0.6m below the fair value of assets being acquired.
Helios will reinsure 70% of 2020 underwriting year in line with its stated policy of reducing ‘on-risk’ exposures.
In addition to the Catbang transaction, Helios says it is continuing to pursue a number of further Lloyd’s LLV acquisitions in line with its strategy.