Lloyd's of London insurer and reinsurer Beazley Group has acquired the entire issued share capital of the insurance investment arm of Santam UK, Santam Corporate, for GBP14.4 million in cash.
The purchase will boost Beazley’s Lloyd’s underwriting capacity to GBP697 million from GBP647 million.
In 2005, Santam Corporate generated GBP1 million in pretax profit and, under the terms of the deal, all profits from between 2004 and 2006 will go to Beazley.
Andrew Beazley, CEO of Beazley Group, said: I am delighted that we have been able to acquire Santam’s capacity. Beazley Group will now be able to take a larger share of the combined syndicates at a time when underwriting conditions remain good.