The Bermuda-based PXRE group of insurance companies has completed its exit from Lloyd's with the acquisition by Chaucer Holdings PLC of PXRE Limited.
Chaucer said the newly acquired, wholly-owned subsidiary of PXRE Reinsurance Company provides all the capital for Syndicate 1224, which ceased underwriting in 2000 and will close into Chaucer's Syndicate 1084.
The acquisition price of PXRE Limited was not revealed by Chaucer beyond the statement that it was a "nominal sum." Chaucer said it will pay additional funds for taxation benefits stemming from the deal.
The transaction includes reinsurance arrangements to ensure no erosion of PXRE Limited's net assets from its exposure to 2000 and prior years of account underwriting.
"The transaction fits the Chaucer strategy of developing income streams from syndicate management and closure for third parties," said Chaucer Chief Executive Ewen Gilmour. "It builds on our underwriting and managing agency competencies, providing diversification and balance to the group's interests."
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