Amlin to buy marine MGA RaetsMarine for $50m

Lloyd’s insurer Amlin has agreed to buy marine managing general agency RaetsMarine for $50m (£33m) in cash and shares.

RaetsMarine is a global provider of fixed-premium protection and indemnity (P&I) insurance. Amlin said its new acquisition ranks in the top three in this market.

Amlin added that the purchase was part of its strategy to grow its marine business.

RaetsMarine will be owned by Amlin Netherlands Holding and will operate as a service company under the leadership of its existing managing director, Folkert Strengholt. The company will report as part of Amlin Europe, led by chief executive Kim Hvirgel.

The $50m price tag for the MGA will be paid with a 50:50 split between cash and new Amlin shares, with up to a further $15 million payable 24 months after completion depending on RaetsMarine’s hull and cargo claims ratios for the three underwriting years up to and including 2012.

Amlin chief underwriting officer Simon Beale said: “Amlin has ambitious growth plans for our global marine business and this acquisition represents a key part of our coherent international marine strategy. RaetsMarine is an established and well run business and we look forward to building on the opportunities it presents.”

RaetsMarine’s Strengholt added: “Having worked with Amlin for a decade, we look forward to becoming part of the Group. This transaction makes enormous sense as it will enable us to provide our clients with a broader marine insurance offering and to benefit further from the close working relationship we already have with Amlin.”