Flagstone To Sell Lloyd’s Operation For $48M
Bermuda’s Flagstone Reinsurance Holdings said today [Apr.3] it will sell its Lloyd’s operations to specialty insurance business ANV Holdings BV for about $48 million in cash.
Bermuda Flagstone will also release about $162 million in underwriting capital that is currently supporting the unit’s operations.
Flagstone’s Lloyds segment includes the business generated for Lloyd’s Syndicate 1861 by Marlborough Underwriting Agency, which was acquired by Flagstone from Berkshire Hathaway in 2008.
In October, Flagstone announced plans to sell its Lloyds and Islands Heritage units to focus on its property and property catastrophe businesses.
On Monday, the company said it sold its Islands Heritage segment to BF&M Limited for about $68 million.
“The divestiture will enhance our focus on our core businesses and, along with other strategic actions already underway, will create additional capital to pursue our business,” David Brown [pictured], Flagstone’s chief executive said in a statement.
ANV will finance the deal with help from the Ontario Teachers’ Pension Plan Board.
Evercore Partners is acting as financial advisor to Flagstone in connection with the transaction which is expected to be completed before the end of the second quarter of 2012.
Flagstone’s shares, which have lost about 14 percent of their value since the company reported fourth-quarter results in February, closed at $7.89 on Monday on the New York Stock Exchange.
