Canopius AG has signed a definitive purchase and sale agreement that will see the merger of its Lloyd's business with that of AmTrust at Lloyd's, a division of AmTrust Financial, subject to regulatory approval.
Upon completion, expected in the third quarter of 2019, the transaction will create a top-five insurer at Lloyd's with combined premiums of approximately $2.2 billion, Canopius said in a statement.
From January 1, 2020, Canopius said that it plans to merge its Syndicate 4444 with AmTrust Syndicate 1861 under the management of Canopius Managing Agents. As part of the transaction, AmTrust Financial Services Inc. will become a significant minority shareholder in Canopius.
Canopius' chairperson, Michael Watson, said, ”I am delighted at the prospect of welcoming our talented new colleagues from AmTrust at Lloyd's. Today's announcement marks a transformational step in our determination to build a leading Lloyd's franchise. The AmTrust at Lloyd's business brings significant underwriting expertise, product diversification, and scale to the Canopius portfolio. Together we will broaden the product and service proposition we offer our highly-valued clients and distribution partners. Quite simply, this is a unique and exciting opportunity which places us amongst the top five businesses at Lloyd's and we welcome AmTrust as a significant minority shareholder in Canopius.”
AmTrust Financial's chairperson and chief executive officer, Barry Zyskind, said, “The sale of AmTrust at Lloyd's to Canopius is a significant step in the AmTrust Forward vision to be a leading specialty commercial P&C insurer focused on local markets and niche products where we can add significant value. This transaction joins AmTrust with a great partner in Canopius through our minority stake in a top-five Lloyd's syndicate. Our Lloyd's clientele and employees will be well served by the new, larger, Canopius operation.”
Victoria Spears
Victoria Prussen Spears is senior vice president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. A graduate of Sarah Lawrence College and Brooklyn Law School, Ms. Spears was an attorney at a leading New York City law firm before joining Meyerowitz Communications. She may be contacted at [email protected].