Wellington sets up UK's biggest independent reinsurer
Thursday 30 May 2002
Wellington Underwriting, a Lloyd's of London insurer, yesterday unveiled plans to create Britain's largest independent reinsurer and said its non-executive chairman would be Paul Myners, who conducted the Government's review into institutional investment.
Wellington has raised £448m to fund the new reinsurer, which will be called Wellington Re, in the largest-ever private funding of a European financial services company. Private equity companies which have invested include Candover, 3i, Blackstone of America and Phoenix Equity Partners.
Wellington has been trying to raise the money for the venture for nearly a year. It succeeded after investors saw how much insurance premiums rose after the 11 September attacks on the World Trade Centre and the Pentagon, which have hiked up the cost of cover in most areas of insurance. Wellington Re will concentrate on property reinsurance, mainly in America, as well as casualty and commercial reinsurance.
The new reinsurer will start operating in June from a London base, bucking the trend of many new ventures that have recently based themselves in the Bermuda market.
Chris O'Kane, who will become chief executive of Wellington Re, said: "London is where there are amazingly creative minds and the biggest broking community in the world. We realised that there wasn't enough capital for them to use."
Mr O'Kane was Wellington's chief underwriter and is moving over to the new business along with 40 staff, who will be the sole underwriters of the reinsurance business.
The company will be mainly owned by its investment consortium, but Wellington has the right to take up to 28 per cent of Wellington Re's share capital by 28 November.
Wellington shares, which have fallen sharply in the past year, closed unchanged at 87.5p.
- 1 Malaysia Airlines MH17 crash: Pro-Russian rebel 'admits to shooting down plane'
- 3 Israel-Gaza conflict: The myth of Hamas’s human shields
- 5 Dutch paedophile club to fight their ban at the European Court of Human Rights
Lana Del Rey: 'I have slept with a lot of guys in the industry'
Peaches Geldof cause of death: 'Heroin addict' socialite had taken fatal dose of drug, inquest concludes
Peaches Geldof inquest: Tragic final moments of socialite's life reveal she lied to husband about failed heroin tests
Israel-Gaza conflict: The myth of Hamas’s human shields
Malaysia Airlines MH17 crash: Was a Russian-made missile really parked in this quiet square?
Malaysia Airlines flight MH17 crash: 'Nine Britons, 23 Americans and 80 children' feared dead after Boeing passenger jet is 'shot down' near Ukraine-Russia border
Malaysia Airlines MH17 crash: Vladimir Putin is given 'one last chance' to end hostilities in Ukraine
The 'scroungers’ fight back: The welfare claimants battling to alter stereotypes
The truth about conspiracy theories is that some require considering
Malaysia Airlines MH17 crash: Ukrainian military jet was flying close to passenger plane before it was shot down, says Russian officer
Malaysia Airlines MH17 crash: Massive rise in sale of British arms to Russia
iJobs Money & Business
£350 - £400 per day: Orgtel: PMO Analyst - Banking - London - £350 -£400 per d...
£300 - £350 per day + competitive: Orgtel: Cost Reporting Manager - MI Packs -...
£35000 - £40000 Per Annum plus 23 days holiday and pension scheme: Clearwater ...
£475 - £525 per day: Orgtel: Test Lead, London, Investment Banking, Technical ...