Daily Sabah logo

Politics
Diplomacy Legislation War On Terror EU Affairs Elections News Analysis
TÜRKİYE
Istanbul Education Investigations Minorities Expat Corner Diaspora
World
Mid-East Europe Americas Asia Pacific Africa Syrian Crisis Islamophobia
Business
Automotive Economy Energy Finance Tourism Tech Defense Transportation News Analysis
Lifestyle
Health Environment Travel Food Fashion Science Religion History Feature Expat Corner
Arts
Cinema Music Events Portrait Reviews Performing Arts
Sports
Football Basketball Motorsports Tennis
Opinion
Columns Op-Ed Reader's Corner Editorial
PHOTO GALLERY
JOBS ABOUT US RSS PRIVACY CONTACT US
© Turkuvaz Haberleşme ve Yayıncılık 2023

Daily Sabah logo

عربي
  • Politics
    • Diplomacy
    • Legislation
    • War On Terror
    • EU Affairs
    • Elections
    • News Analysis
  • TÜRKİYE
    • Istanbul
    • Education
    • Investigations
    • Minorities
    • Expat Corner
    • Diaspora
  • World
    • Mid-East
    • Europe
    • Americas
    • Asia Pacific
    • Africa
    • Syrian Crisis
    • Islamophobia
  • Business
    • Automotive
    • Economy
    • Energy
    • Finance
    • Tourism
    • Tech
    • Defense
    • Transportation
    • News Analysis
  • Lifestyle
    • Health
    • Environment
    • Travel
    • Food
    • Fashion
    • Science
    • Religion
    • History
    • Feature
    • Expat Corner
  • Arts
    • Cinema
    • Music
    • Events
    • Portrait
    • Reviews
    • Performing Arts
  • Sports
    • Football
    • Basketball
    • Motorsports
    • Tennis
  • Gallery
  • Opinion
    • Columns
    • Op-Ed
    • Reader's Corner
    • Editorial
  • TV

Axis Capital to buy Lloyd's of London insurer Novae for $605M

by

LONDON Jul 07, 2017 - 12:00 am GMT+3
by Jul 07, 2017 12:00 am

Lloyd's of London insurer Novae Group Plc said it had agreed to be taken over by Axis Capital Holdings Ltd, a Bermuda-based speciality insurer and reinsurer, for 467.6 million pounds ($605.07 million) in cash, sending its shares soaring over 20 percent.

The 700 pence per share offer for Novae represents a premium of over 20 percent to the London-based insurer's closing price on Wednesday.

Axis Chief Executive Albert Benchimol said the acquisition of Novae, which covers property, casualty, marine, aviation and political risk, would create an about $2 billion player in the London speciality market.

The deal, expected to close in the final quarter of the year, will add to Axis' earnings in the first year and allow it to bulk up in the Lloyd's insurance market."It (Novae) remains a relatively small player in a global industry. Axis is a substantial and successful business which represents an excellent partner for the Novae business, its customers and employees," John Hastings-Bass, chairman of Novae, said.

Axis operates in the United States, Europe, Singapore, the Middle East, Canada and Latin America. "It (the deal) also allows Novae to continue to invest and grow its Lloyd's speciality insurance business backed by a strong capital base," Peel Hunt analyst Andreas van Embden wrote in a note.

The deal has no termination fee, implying confidence from both parties that a counterbid was unlikely, said Eamonn Flanagan, analyst at Shore Capital.

Insurers have been preparing for a wave of mergers and acquisitions, as valuations in the Lloyd's insurance market became more attractive to overseas buyers due to a fall in the value of the pound after Britain voted to leave the European Union. Lloyd's companies such as Hiscox, Lancashire and Beazley have long been seen as acquisition targets.

"All three offer significant benefits to an acquirer, over and above the access to Lloyd's with all its accompanying advantages," Flanagan said.

Insurers Amlin, Brit and Catlin were bought by international peers in recent years.

Lancashire was the top gainer on the FTSE Midcap Index , while Beazley was the third largest gainer. Novae's shares were up 22 percent at 709.5 pence at 0742 GMT. Credit Suisse International and Fenchurch Advisory Partners LLP are the financial advisers to Axis, while Evercore is advising Novae.

About the author
Research Associate at Center for Islam and Global Affairs (CIGA) at Istanbul Sabahattin Zaim University
  • shortlink copied
  • RELATED TOPICS
    fight-against-terrorism DEUTSCHE-BANK US-LIBYA-RELATIONS
    KEYWORDS
    business
    The Daily Sabah Newsletter
    Keep up to date with what’s happening in Turkey, it’s region and the world.
    You can unsubscribe at any time. By signing up you are agreeing to our Terms of Use and Privacy Policy. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
    No Image
    Gotta go fast: Ferret Racing Championship in Britain
    PHOTOGALLERY
    • POLITICS
    • Diplomacy
    • Legislation
    • War On Terror
    • EU Affairs
    • News Analysis
    • TÜRKİYE
    • Istanbul
    • Education
    • Investigations
    • Minorities
    • Diaspora
    • World
    • Mid-East
    • Europe
    • Americas
    • Asia Pacific
    • Africa
    • Syrian Crisis
    • İslamophobia
    • Business
    • Automotive
    • Economy
    • Energy
    • Finance
    • Tourism
    • Tech
    • Defense
    • Transportation
    • News Analysis
    • Lifestyle
    • Health
    • Environment
    • Travel
    • Food
    • Fashion
    • Science
    • Religion
    • History
    • Feature
    • Expat Corner
    • Arts
    • Cinema
    • Music
    • Events
    • Portrait
    • Performing Arts
    • Reviews
    • Sports
    • Football
    • Basketball
    • Motorsports
    • Tennis
    • Opinion
    • Columns
    • Op-Ed
    • Reader's Corner
    • Editorial
    • Photo gallery
    • Jobs
    • privacy
    • about us
    • contact us
    • RSS
    © Turkuvaz Haberleşme ve Yayıncılık 2021