Amlin plans to increase stake in Leadenhall JV to 75%

7th Jul 2014 08:41

Amlin announced on Monday that it has reached non-binding agreement to grow its stake in Leadenhall Capital Partners (LCP) LLP, its joint venture (JV) investment management business with LCP's individual partners. The FTSE 250 non-life insurance and reinsurance underwriting group is planning to increase its interest in the group from 40% to 75%, for which it will pay an as yet undecided consideration in three instalments between 2014 and 2016. The sum paid will be determined by the JV's profitability. Amlin explained that the agreement, which has yet to receive the necessary approvals, protects the operational independence of the JV. Chief Executive Charles Philipps said: "Since its original seed investment in Leadenhall Capital Partners, Amlin has supported LCP's strong growth to approximately $1.8bn of assets under management as of today. During this time LCP and Amlin have developed significant synergies, which have helped to differentiate Amlin's (re)insurance client proposition from its competitors as well as strengthening LCP's market position. "As alternative capital becomes an increasingly prominent feature of (re)insurance markets, I expect Amlin's increased interest in LCP to support its continued growth and further enhance co-operation and synergies between our businesses."The share price had slipped 0.07% to 479.58p by 08:16. NR