Flagstone Reinsurance Holdings Ltd. said it has entered into an agreement to acquire Marlborough Underwriting Agency Ltd. from the Berkshire Hathaway Group. Transaction terms were not released.
The Hamilton, Bermuda-based insurance and reinsurance company said Marlborough Underwriting is the managing agency for Lloyd's Syndicate 1861, a Lloyd's syndicate underwriting a specialist portfolio of short-tail insurance and reinsurance.
Flagstone said the acquisition does not include the existing corporate Lloyd's member or any liability for business written in 2008 or prior.
The company said it is in the process of licensing its own corporate capital vehicle which will be the capital provider for Syndicate 1861 for 2009 and subsequent business. The transaction is subject to Lloyd's and U.K. Financial Services Authority approval.
Flagstone Chairman Mark Byrne said, "Marlborough and its team are an excellent fit and an important strategic addition to Flagstone. We are pleased with the existing business plan and are planning only additive changes. Having a modern Lloyds platform, with access to both London business and that sourced globally from our network of 13 offices, will allow Flagstone to complete our mission of being a multiline reinsurer and an insurer in selected markets."
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