Amlin plc is, through a wholly owned subsidiary, to acquire Lead Yacht Underwriters Limited ("Lead Yacht") from members of Lead Yacht's board of directors.
Lead Yacht is an underwriting agency and a specialist in the provision of superyacht insurance. The company underwrites through an exclusive network of insurance brokers and in the current financial year expects to handle approximately USD 34m of gross written premiums of which Amlin initially intends to underwrite approximately one third. As at 31 May 2010, the date of the company's latest audited accounts, Lead Yacht had gross assets of approximately GBP 6.4m.
The acquisition provides Amlin with the opportunity to acquire a niche underwriting agency with a reputation in its market and a track record of underwriting profitability.
Lead Yacht's business complements Amlin's existing yacht portfolio, which is focussed predominantly on smaller yachts.
The transaction remains subject to the approval of the change of control by the Financial Services Authority.
The move also demonstrates Amlin's continuing focus on further diversifying its underwriting portfolio to better balance its overall risk exposures and thereby enhance the Group's long term profitability.
Charles Philipps, Chief Executive of Amlin, commented, "The acquisition of Lead Yacht is a tremendous opportunity for Amlin to build on the success of its existing yacht business through growth into the super-yacht class. Lead Yacht is a proven leader in its field and its quality management team, led by Allan Norton, and specialist underwriting knowledge will provide Amlin with an excellent platform from which to develop this business in the future".
Allan Norton, Managing Director of Lead Yacht, said, "This is an exciting milestone for our company and provides an opportunity to enhance our product offering to our panel of brokers and clients. We believe this partnership gives us a strong platform for continued growth".
