Rent Shield Expands Lloyd's Connection

By Mark E. Ruquet

NU Online News Service, Dec. 15, 10:45 a.m. EST?Rent Shield Corp., a program manager, said it has acquired the assets of Canadian Intermediaries Limited of Toronto, Canada.[@@]

The acquisition is for $5 million in a combination of stock and cash. Miami-based Rent Shield said the deal is expected to add $25 million in revenue to the firm.

Canadian Intermediaries specializes in hard-to-place liability and credit insurance throughout North America and is a coverholder representing underwriters at Lloyd's of London. A coverholder is anyone to whom the Lloyd's syndicates delegate underwriting authority.

Rent Shield said Canadian Intermediaries is owned by Stephen Stonhill, also chairman of Rent Shield.

Rent Shield also said it has chosen Guy Carpenter & Co., a reinsurance brokerage firm and a subsidiary of Marsh & McLennan Companies based in New York City, to place North American reinsurance.

Hugh Forrest, Rent Shield's chief operating officer, said the firm offers rental managers a guarantee program to pay rental income in the case of rental default. The program also covers willful damage by a tenant, pre-qualifies prospective tenants within 48 hours of application, and eliminates the requirement of security deposits and last month rent from tenants.

The firm also provides online access to list vacant properties and other services including legal representation.

The service, available in the U.S. and Canada, obtains reinsurance cover through the Lloyd's market. He said it "dovetail's nicely" with commercial insurance lines brokers offering coverage to the residential rental market.

According to Securities and Exchange filings, the company was formed in April of this year after the acquisition of an Internet entity, E Hobby Network Inc. E Hobby was an e-business distributor of toys whose business plan failed. E Hobby changed its name to Rent Shield and aligned itself with Rent Gard of Mississauga, Ontario, Canada, which designed the guarantee program.

Mr. Forrest said the firm is in the process of moving all operations to Miami.

Additional information on Rent Shield is available at www.rentshieldcorp.com.

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Rent Shield Expands Lloyd's Connection

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