Lloyd's insurer's capital structure and surplus lines business seen as attractive
A Bermudan or American company is most likely behind this week's bid for Kiln, according to a leading analyst.
KPC Peel Hunt analyst Charles Coyne said that Kiln would be attractive to a Bermudan because of its capital structure. He also said that an American company may be seeking to acquire the Lloyd’s insurer in order to channel surplus lines business to the Lloyd’s market.
Reports have also suggested Tokio Marine as a potential bidder.
Kiln provides less than half of the total capacity of its Syndicates, in a similar manner to both Heritage – the subject of a recent bid from Bermudan Ironshore – and Atrium.
Atrium attracted interest and eventually a bid from Bermudan Ariel Re.
Commenting on the potential role of an American insurer in the offer, Coyne said: “Kiln had previously been looking to expand to take advantage of the US surplus lines market and take a similar position to Beazley.”
