German reinsurance giant Hannover Re has agreed to acquire UK-based Argenta for an undisclosed price.
Argenta is the parent company of insurance underwriting firm Argenta Syndicate Management and insurance investment advisor Argenta Private Capital.
It also manages Lloyd’s syndicate Argenta Syndicate 2121 which focuses on short-tail property business and specialty lines.
Through the acquisition, Hannover Re is expected to find itself in a position to get further access to global and London business.
Argenta on the other hand will be backed by Hannover Re in achieving its envisaged growth trajectory.
Hannover Re CEO Ulrich Wallin said: "For some time now we have been interested in a Lloyd’s syndicate with a view to gaining additional access to international and London Market business. We are delighted to have found an ideal partner in Argenta.”
According to Hannover Re, Syndicate 2121 writes a diversified book of business and had reported gross premium of £280m in the financial year 2016.
Apart from its contribution, the service companies and the expertise of Argenta team’s experienced team have led the group realize good returns in recent years.
Argenta chairman Alasdair Locke said: “We are delighted to have reached agreement to become part of such a strong and well-respected reinsurance group.
“Hannover Re has been a valued business partner of Syndicate 2121 for many years, both as a reinsurer and capital provider and we believe that this transaction is in the best interests of Argenta, its customers and its staff.”
The acquisition following meeting of all mandatory approvals is likely to be completed in the third quarter.
Earlier, in the month, Hannover Re reported a growth of 1.8% to its group net income to €1.17bn in the 2016 financial year.
Image: Hannover Re office building, south entrance, Karl-Wiechert-Allee 50, 30625 Hannover. Photo: courtesy of Hannover Re.