Lloyd's of London insurer Novae to be bought by Axis Capital Holdings
LLOYD’S of London insurer Novae has agreed to be bought by Bermuda-based insurance group Axis Capital Holdings for £467.6 million.
Lloyd's of London insurer Novae to be bought by Axis Capital Holdings
The 700p-a-share cash offer represents a 20 per cent premium to Novae’s previous closing share price, which jumped 129p to 710½p.
Despite making “significant progress” as a standalone business, Novae’s chairman John Hastings-Bass said it remained a “relatively small player in a global industry”.
Axis is a substantial and successful business which represents an excellent partner for the Novae business, its customers and employees
He continued: "Axis is a substantial and successful business which represents an excellent partner for the Novae business, its customers and employees."
Axis said the combination would create a $2billion (£1.54billion) player in the London speciality insurance market, enhancing its range of products and underwriting expertise.
Axis Capital Holdings is based in Bermuda
Albert Benchimol, chief executive of Axis said: “We are very pleased to announce this proposed acquisition of Novae, which will create [an approximately] $2bn player in the London specialty market, anchored as a top 10 insurer in the Lloyd’s market.
"The acquisition is fully aligned with Axis’s international specialty insurance growth strategy and will combine two highly complementary businesses, substantially enhancing our depth and breadth of product, underwriting expertise and leadership capabilities to better serve our clients and brokers.”