2009-06-03

By Editor, CIR

Lloyd's of London insurer Amlin has announced a placing of 23.5 million shares to help finance its Eur350 million purchase of Fortis Corporate Insurance (FCI) from the Dutch government.

Amlin says it expects the acquisition to be earnings and return on equity enhancing in 2009 and beyond, and will position the group as a leading provider of marine, liability and commercial property insurance in the Netherlands and Belgium.

FCI provides corporate property and casualty insurance and risk management services in both countries. The company has its headquartered at Amstelveen in the Netherlands and also has offices in Rotterdam, Antwerp, Brussels and Paris.

Commenting on the deal, analyst Tom Dorner at Oriel Securities said: ''Amlin has for some time expressed a desire to make an acquisition and acquired AFU in France during 2008. The acquisition will provide Amlin with a strong European presence and diversification away from catastrophe reinsurance.

"FCI was loss making in 2008 so a key question will be whether Amlin are able to turn around FCI's operations. Amlin has a strong track record for delivering sector leading underwriting results, so on first impressions one has to be hopeful that they will be able to achieve this."

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