Thursday, 23 August 2012
Canopius secures Omega Insurance Holdings Ltd
Canopius Group Ltd has completed the acquisition of Omega Insurance Holdings Ltd—the UK-listed, Bermuda-domiciled insurance and reinsurance group with operations at Lloyd’s, via Syndicate 958, as well as in Bermuda, the US and Germany.
Michael Watson, Executive Chairman at Canopius
These platforms will be integrated into Canopius under its brand.
The acquisition brings the annualised premium income of Canopius to more than £1 billion.
Michael Watson, Executive Chairman at Canopius, said: "The acquisition of Omega represents a significant acceleration of our ambition to establish Canopius as a global and well diversified insurance group. Our premiums under management now exceed £1 billion and we are firmly positioned as a top ten business at Lloyd’s. However this does not curtail our ambition and we will develop further profitable growth as opportunities arise, whether organically or through acquisitions. As part of Canopius, the successful Syndicate 958 will be revitalised and have a secure and stable future. We welcome our new colleagues to Canopius."
Canopius Group Limited is a privately owned international insurance and reinsurance group with operations in the UK, Ireland, Germany, Switzerland, Bermuda, US, Singapore and Australia.
Since the acquisition and delisting of Omega Insurance Holdings Ltd, AM Best has withdrawn the issuer credit rating (ICR) of the purchased company.
The rating agency has also said that the financial strength rating (FSR) of A (Excellent) and ICR of ‘a+’ of syndicate 958 remain unchanged at the Lloyd’s market level.
Following the acquisition of its parent company—Omega Insurance Holdings Ltd—AM Best added that the financial strength rating of A- (Excellent) and issuer credit rating of ‘a-‘ of Omega US Insurance, Inc, headquartered in Schaumburg, IL, (Omega US) remain under review with negative implications.
AM Best’s ratings of Omega US will remain under review with negative implications pending AM Best’s discussions with Canopius’ management, further financial disclosure by Canopius and a more comprehensive understanding as to the immediate and long range effects that this transaction poses on Omega US’ strategic and financial prospects under the new ownership.