US-insurer CNA is set to take a 9.1% holding in London-listed insurer Chaucer, in a deal that will see Chaucer buy CNA Corporate Capital, CNA's Lloyd's corporate member.
The deal will give Chaucer the right to manage CNA's non-marine Syndicate 1229.
Chaucer said it would fund the acquisition of CNA Corporate Capital by issuing the CNA Group with 8.4 million new Chaucer ordinary shares at 56p per share.
That represents a premium of 11% to the Chaucer closing mid-market price of 50.5p per share on 20 December.
In total, the deal will provide an extra £35m of underwriting capacity to Chaucer's three 'in house' syndicates (587, 1084 and 1096) for the 2002 year of account.
