Insurance Price
 
Call 0161 763 8222
Mon-Fri 9am-5pm
Latest News & Articles
  • Unbeatable Customer Service
  • Tailored Quotes
  • Leading UK Insurer
  • Competitive Premiums
  • Superb Customer Service

Catlin Secures Insurance Takeover Deal

catlin insurance dealThe UK’s insurance sector has been at the height of the industry’s attention recently after Catlin spoke out about their recommended ‘cash and share’ offer from XL which valued the group as £2.8 billion. This figure is a massive 23 percent premium to Caitlin’s share price on the 16th of December last year which has had the knock-on effect of a wave of consolidation in the industry.

This offer is easily Mr Catlin’s favoured option due to the healthy premium that has been offered for his business. His board of directors are also backing the offer with Shore Capital’s Eamonn Flanaghan saying: “I don’t imagine a counter bid emerging. Hostile bids in this industry are as rare as hen’s teeth.”

The deal’s rationale (expected to be finished by the end of 2015) include cost synergies exceeding £1.3 million per year starting at the end of 2017. Catlin Insurance, founded in 1984, expects to benefit from the huge diversification that will be delivered by partnering with XL. They will also reap the rewards of the economies of scale, making the new business the 8th biggest reinsurer in the world.

Joanna Parsons, analyst at Westhouse said: “The deal sorted out potential succession issues for Catlin as to who would take over and allows them to exit with their heads held high, having achieved a fair price for his investors. Catlin shares ended the session at just under 6 percent higher at 700p. The news ignited other companies in the sector, with blue chip Friends Life Group 6.6p firmer at 371.7p, Aviva 7.2p higher at 490.4p and Admiral Group up 16p at 1353p.”

James Savery, 15 January 2015

What Our Clients Say

General All-Purpose Plastics Ltd

I just wanted to send a note to thank you for all of the work you have done for General All-Purpose Plastics over the years. You have consistently guided us in a professional way through the complex and seemingly ever changing world of insurance. As you know...

Read more
Liverpool Victoria
QBE
Aviva
Zurich

Insurance Price - © Copyright 2022

Insurance Price is a trading name of Bricks And Motor Insurance Brokers Limited.

Authorised and regulated by the Financial Conduct Authority (FCA) No. 306923. Company Number: 4838284