Canopius AG (Canopius) has announced the signing of the definitive sale and purchase agreement that will see the merger of its Lloyd’s business with that of AmTrust at Lloyd’s, a division of AmTrust Financial, subject to regulatory approval.
The completion of the transaction, which is expected to close in the third quarter of 2019, will result in the establishment of a top-five Lloyd’s insurer with combined premiums of roughly £2.2bn.
From 1 January 2020, Canopius will merge its Syndicate 4444 with AmTrust Syndicate 1861 under the management of Canopius Managing Agents. As part of the deal, AmTrust Financial Services Inc. will become a significant minority shareholder in Canopius.
Canopius chairman Michael Watson said: “I am delighted at the prospect of welcoming our talented new colleagues from AmTrust at Lloyd’s. Today’s announcement marks a transformational step in our determination to build a leading Lloyd’s franchise. The AmTrust at Lloyd’s business brings significant underwriting expertise, product diversification, and scale to the Canopius portfolio. Together we will broaden the product and service proposition we offer our highly-valued clients and distribution partners. Quite simply, this is a unique and exciting opportunity which places us amongst the top five businesses at Lloyd’s and we welcome AmTrust as a significant minority shareholder in Canopius.”
Barry Zyskind, AmTrust Financial chairman and CEO said: “The sale of AmTrust at Lloyd’s to Canopius is a significant step in the AmTrust Forward vision to be a leading specialty commercial P&C insurer focused on local markets and niche products where we can add significant value. This transaction joins AmTrust with a great partner in Canopius through our minority stake in a top-five Lloyd’s syndicate. Our Lloyd’s clientele and employees will be well served by the new, larger, Canopius operation.”