Takeover on the horizon for Omega

by David Masters

Story link: Takeover on the horizon for Omega

Omega Insurance saw a 12% rise in share prices yesterday following a confirmation by the company of takeover interest.

The Bermuda based insurance company is the holding company for Omega Underwriting, who are Lloyd’s managing agent, and who manage Syndicate 958.

The confirmation of takeover interest revealed that parties have shown interest in taking over the Omega Insurance operation in its entirety, including Bermudan, U.S., and European units, as well as Lloyd’s managing agent.

Omega have given marketing documents to the potential bidders. The company was keen to stress that discussions are only at very early stages, and that no formal offers have yet been made.

An Omega spokesperson said: “The board has to act in shareholders’ interests in responding to interest from other companies.”

In 2006 Omega’s Syndicate 958 made pre-tax profits of £37 million with a combined ration of 85%, writing a total of £250 million in gross premiums.