Omega Confirms Unsolicited Approach
Bermuda-based, London-listed insurer Omega this morning (Jan. 10) confirmed industry rumours that it has received an unsolicited approach from specialist underwriter Canopius.
Omega said the approach comprised a mixture of cash and unquoted shares, heightening speculation 2011 will see a slew of mergers and acquisitions in the Bermuda re/insurance field. Earlier this month international consultancy firm Keefe, Bruyette & Woods (KBW) had reported Bermuda reinsurers were “treading water” because of falling premium prices and predicted a number of M&A’s were likely in the New Year.
Operating out of Crown House on Par-La-Ville Road, Omega Insurance Holdings Limited is a Bermuda domiciled international insurance and reinsurance group.
The company has business operations in Bermuda, London, Chicago and Cologne and undewrites predominantly short-tail property insurance and reinsurance account, with a focus on insuring small to medium sized insureds and reinsuring smaller insurance companies.
Canopius Group Ltd., a privately owned Lloyd’s re/insurer which operates two subsidiaries in Bermuda hinted it was interested in acquiring Omega last week when it unveiled plans to open a new Swiss underwriting platform.
“The directors of Omega have noted the recent press comment in relation to a possible offer for the company from Canopius Group Limited,” said an Omega statement. “The company confirms that it has received an unsolicited approach from Canopius proposing an offer comprising a mixture of cash and unquoted share consideration. ”
“There is no certainty that an offer will be forthcoming, nor as to the terms of any such offer. Whilst any approach which may be in shareholders’ interests will be duly considered, the board continues to build the business. The board has consulted with Invesco Perpetual, the company’s largest shareholder, who is supportive of that position.
Omega said a further announcement will be made if appropriate.
