Limit PLC

Current Syndicates - 45, 79, 318, 386, 566, 1036, 1156, 1234
Other Syndicates of Interest

12 September 2000Future Plans for Syndicate 79
Limit PLC has now announced their likely future proposals for the 2001year of account.

Following the resignation of Barnabus Hurst Bannister as active underwriter, consideration has been given to the future of the syndicate. The likely proposals envisage a two stage restructuring of the syndicate.

The syndicate currently writes in two main areas. Approximately 40% comprises a broadly based marine account and the remainder is non-marine, made up principally of direct property and liability classes. Accordingly, Limit's proposal is likely to be to establish two distinct divisions within the syndicate, with the marine division headed up by Steven Gargrave, currently active underwriter of QBE Sub-syndicate 2724 and the non-marine division by Mark Harrington, active underwriter for QBE Sub-syndicate 2000. Mark Harrington is likely to be proposed nominated active underwriter of Syndicate 79 as a whole. Both underwriters would also retain their existing current roles and accordingly, the necessary multiple syndicates' consents to these proposals will be required from Lloyd's.

The second stage of restructuring is likely to be proposed for the 2002 account, whereby the two divisions created within the syndicate would merge with their complimentary QBE Sub-syndicates.

Limit has also announced the resignation of a further four of the syndicates' class underwriting staff, namely Paul Dawson (Energy), David Croom-Johnson (Marine Liability), Richard Palengat (Marine Hull) and John Chambers (Property).
08 August 2000Limit announce staff changes
Syndicate 79

Limit PLC has announced that Barnabus Hurst-Bannister will be resigning from his role as Active Underwriter of Syndicate 79 at the end of September. QBE expects to clarify its plans for his successor in early September, following the completion of the Limit acquisition.

Syndicate 566

Limit PLC has announced that John Hamblin will be stepping down as Active Underwriter of Syndicate 566 at the end of August. It is expected that, following completion of QBE's acquisition of Limit and subject to Lloyd's approval, John Daly, currently Deputy Underwriter of the Syndicate, will succeed John as Active Underwriter.

The political and credit risk team of Syndicate 566, headed by Matthew Woolham, has also decided to leave at the end of August. The Syndicate will at that time withdraw from this class, which represented just under £10M of gross premium income per the proposed 2001 plan.

Management

Lawrence Holder, Deputy Managing Director of the agency, also intends to pursue alternative opportunities and will leave the group around the end of the year. In the meantime, he will continue to work on the integration of the Limit and QBE businesses.

04 July 2000Limit and Wellington call off merger
Limit PLC has advised capital providers that the Board has now recommended an improved proposal from QBE. It is expected that a formal offer from QBE will be sent to Limit's shareholders in the near future in order that the offer may be declared unconditional before the end of July. Wellington Underwriting has now confirmed that they will be withdrawing their recent proposal for the acquisition of Limit.

The proposed merger of Limit Syndicates 79, 566 and 456 with Wellington Syndicate 2020 will not therefore proceed.

Limit has commenced discussions with the senior management of QBE as to their plans for the Limit business and will keep capital providers informed of developments.

Limit has also confirmed that they do not have any plans to merge any Limit syndicates for 2001, other than the previously announced merger of motor syndicates 877 and 980.

05 May 2000QBE bit for Limit threatens merger
The proposed merger of Limit PLC and Wellington Underwriting Agencies Limited ("Wellington") is uncertain following an unsolicited offer made by the Australian company QBE Insurance Group for Limit. QBE is offering 120p per share for Limit, compared to the current share price of 85.5p and is conditional on the Wellington merger being abandoned.

The board of Limit commented that, "the offer significantly undervalues Limit". However, it was aware that certain of its institutional shareholders would welcome in the short term a cash offer for their Limit shares at a substantial premium to the current share price. It now proposes to seek a higher offer for Limit from potentially interested parties.

The board of Wellington confirmed it would monitor the situation and was prepared to withdraw from the proposed Limit / Wellington deal if it considered the merger was no longer in the best interest of Wellington shareholders.

Ian Agnew, chairman of Wellington, commented, "I regret the possible offer being made by QBE for Limit. The intended merger of Limit and Wellington will create an impressive Lloyd's and international insurance business capable of generating superior returns for both sets of shareholders".

Limit released the following statement on 2nd May stating that, "Although there is now uncertainty as to whether Limit will be able to complete its proposed merger with Wellington, it intends in the meantime to continue work towards this objective".

The statement also pointed out that Limit had received additional irrevocable acceptances (subject to the merger offer being made for Wellington) in respect of 7.7% of Wellington's issued ordinary shares, which together with Limit's existing 3.7% share and earlier irrevocables amounted to 40% of Wellington's issued ordinary share capital.

Source - Insurance Day 2nd May 2000
02 May 2000Wellington Underwriting Agencies Limited


Limit and Wellington have now revealed further details of their merger, which will create an insurance business with an aggregate market capitalisation of more than £310m.

The merged company, to be named Ensign Underwriting, is to be positioned as an international specialty insurance business.

Wellington shareholders will receive 91 Ensign shares for every 100 Wellington shares as part of the deal which values the two businesses as Limit 71% and Wellington 29% of the total.

Following the merger, Ensign proposes to repurchase up to 10% of the issued ordinary share capital, subject to price.

Ensign intends to make the following key management appointments:

Jonathon Agnew Executive Chairman
Ian Agnew Deputy Chairman
Julian Avery Group Managing Director
Julian Cusack Finance Director
Steve Burns Agency Managing Director
Peter Grove Agency Underwriting Director
Anthony Taylor Director of Agency Strategy

As part of it's merger plans, Ensign plans to reduce the number of its managed syndicates from nine to three for the 2001 year of account. Limit's Syndicates, 79, 456 and 566 will merge with Wellington's Syndicate 2020, using Wellington's partnership model developed over recent years. Limit's commercial motor Syndicates 877 and 980 will also merge and Syndicate's 318 and 1036 will be disposed of.

Ensign hopes that the merger of the two companies will result in £26m cost savings to the combined group, coming mainly from £20m reduction in reinsurance costs.

Source: Insurance Day - 27th April 2000



29 March 2000Wellington and Limit enter merger talks
Two of the Lloyd's market's largest companies, Limit PLC and Wellington Underwriting PLC, have confirmed that they have entered into preliminary talks regarding a possible merger.

Analysts believe that the deal under discussion would be on a share-for-share offer basis with no premium payable on the share price.

The market capitalisation of the combined group would be approximately £370m ($590m),

Stephen Searby, associate director of Standard & Poor's said, "Consolidation is inevitable and is being driven by the requirement for Lloyd's market companies to achieve critical mass. There are obvious benefits accruing through the merger of these leading Lloyd's companies. In particular, if the merger does proceed, the combined body will control more than 12% of Lloyd's capacity".

Mark Hewlett, managing director of Moody's Investor Services' European property, casualty and reinsurance division said "I think it is a very positive development for the marketplace and for Lloyd's that two of the largest and most respected listed entities are getting together. It highlights future activity such as potential mergers, acquisitions and consolidation".

The general feeling from other commentators was that the main asset of a merger such as that between Limit and Wellington was the underwriting expertise, which might be lost in a hostile bid.

On the back of this announcement Limit's shares opened up 2.7% at 96p, whilst Wellington's shares were also up by 3.7% at 99p.


Source: Insurance Day - 29th March 2000
14 January 2000Transfer of business from Syndicate 566 to Syndicate 79 for 2000 account
Limit Underwriting Limited has confirmed that, following the completion of the consultative process, Lloyd's has given its consent to the transfer of the business of Syndicate 566 to Syndicate 79with effect from 1st January 2000.

25 November 1999Proposed transfer of business from Syndicate 566 to Syndicate 79 through Limit
John Hamblin, the Underwriter of Syndicate 566 has concluded that the Syndicate's best interests would be served, for the time being, through the consolidation of the Syndicate's activity to those areas of business that have historically formed its core accounts being Marine, Non-Marine and Aviation excess of loss reinsurance and political risks business. It is proposed that the direct Marine account, developed by Michael Moss, will be discontinued within Syndicate 566 at the end of this year and transferred to Syndicate 79. The envisaged transfer of business will occur in respect of any 2000 Account risks and Barnabus Hurst-Bannister and John Hamblin, Underwriters for Syndicate 79 and Syndicate 566 respectively, together with Michael Moss, fully endorse these proposals.
01 November 1999LIMIT - Prior to 1st November, 1999 - please see Janson Green Ltd. or Bankside Syndicates Ltd.

 
 

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