Hardy ‘Could Attract Other Bidders’
Lloyd’s of London insurer Beazley PLC said its takeover interest in smaller rival Hardy Underwriting Bermuda Ltd. would likely trigger competing bids as insurers face continued pressure to merge because of weak prices and tighter capital requirements.
Beazley, which abandoned a $284.7 million offer for Hardy in 2010, today [Feb.7] also reported a 75 percent slump in its 2011 profit as catastrophe-related claims more than doubled.
Beazley chief executive Andrew Horton said the company’s latest initiative to acquire the Bermuda company, launched before Christmas, would probably trigger interest from other potential acquirers.
“Nobody else has actually announced they’re interested, but the information we get is that is that it’s going to be competitive,” he told the Reuter news agency in an interview, adding he had “no idea” who the other potential bidders were.
“We will go through the process in a disciplined manner, and hopefully we will be successful,” Mr. Horton said.
Lloyd’s insurers are seen as ripe for consolidation because persistently weak insurance prices have weighed on their shares, opening up potentially attractive takeover opportunities.
