Cincinnati Financial has reached an agreement to acquire Munich Re subsidiary MSP Underwriting for £102m – a deal that will see it enter the Lloyd’s market for the first time.
MSP Underwriting is the holding company for Beaufort Underwriting Agency, which underwrites for Lloyd’s Syndicate 318, principally in the areas of aviation and international and US property. Syndicate 318 wrote approximately £153m in gross written premiums in 2017.
Beaufort will retain its current management team, and intends to expand into new classes of business.
The acquisition is expected to complete in the first quarter 2019, subject to regulatory approval. Based on current assumptions, the company expects the acquisition to be accretive to 2019 net income.
Peter Röder, a Munich Re board member, said: “We remain committed to the Lloyd’s market, and will continue to grow the business within Munich Re Syndicate Ltd.”
A Munich Re spokesman also confirmed the company has no plans to opt out of any lines at Lloyd’s.
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