Hardy Attracts Beazley’s Interest
Shares in specialist insurer Hardy Underwriting Bermuda were lifted in morning trade on the London Stock Exchange this morning [Dec. 21] by the announcement from British insurer Beazley that it is interested in starting exploratory talks to acquire the firm.
Beazley said in a statement this does not represent a firm intention to make an offer and there can be no certainty that an offer will be made.
Hardy had announced earlier this month that it was starting a strategic review of its operations after receiving preliminary expressions of interest in its business and in the light of the incidence and size of catastrophe events in 2011.
Investment bank Espirito Santo is not surprised given Beazley’s failed attempt to acquire Hardy 12 months ago after Hardy management refused a 350 pence per share bid.
“With Hardy having recently effectively been put up for sale after a catalogue of damaging international catastrophe losses which have pressured the capital base, it seems logical that Beazley would be interested in another approach,” it said.
Hardy Underwriting Bermuda Limited, listed on the London Stock Exchange, is the ultimate holding company for the Hardy group of companies.
Hardy’s business has been built around its management of and participation on Lloyd’s syndicate 382, which underwrites a range of insurance and reinsurance classes on a world wide basis.
Beazley plc, is the parent company of specialist insurance businesses with operations in Europe, the US, Asia and Australia. Beazley manages five Lloyd’s syndicates and, in 2010, underwrote gross premiums worldwide of $1,741.6 million. All Lloyd’s syndicates are rated A by A.M. Best.
