Daily Insurance Industry News
 
 
Daily Insurance Industry News
Thursday 18th of January 2018
October 26, 2010

Brit board recommends Achilles’ cash offer

by Gill Montia

Story link: Brit board recommends Achilles’ cash offer

Brit board recommends Achilles’ cash offer

Brit Insurance has agreed the terms of a cash offer for the business made by Achilles, a newly-incorporated company formed on behalf of private equity firms, Apollo Management and CVC Capital Partners.

The move will give Brit shareholders who accept the offer up to £11 in cash per share, while non-accepting shareholders will receive £10.45 per share in cash plus a contingent value payment of up to £0.25 in cash per Brit share.

Commenting on the proposed deal, Brit chairman John Barton says: “I am pleased that we have reached agreement on the terms of the offer which values Brit Insurance’s shares at a significant premium to the prevailing market price prior to the commencement of the Offer Period.”

He adds: “Having given full consideration to the offer from Achilles, the independent directors believe it represents good value for Brit shareholders and recommend that they accept the offer.”

In an interim management statement, the group also announced that gross written premium fell 8.5% (to £1,220.6 million) in the nine months to 30th September, compared with a year earlier.

The firm explained that lower premium volumes reflect “continued active portfolio management and a disciplined approach to the renewals where premium rates are under excessive pressure”.

Brit provides over 70 classes of insurance and reinsurance protection to businesses worldwide.

 

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