Hampden set to buy another Lloyd's member

Lloyd’s investment vehicle Hampden Underwriting is set to acquire another Lloyd’s corporate member for £2.6m.

In line with its strategy of increasing underwriting capacity through acquisitions, it has exchanged contracts in order to purchase Nameco No 804 Limited.

Nameco has a 2013 underwriting capacity of £1.5m, compared with Hampden’s underwriting capacity of £14.4m and its assets include associated funds at Lloyd’s, to support its underwriting activities of £1.6m.

The completion is subject to regulatory approval from Lloyd’s which is anticipated to take place within 32 days.

With this new acquisition Hampden says it will be able to reduce its overall funds at Lloyd’s by an estimated £700,000.

It follows the recently announced acquisition of two other Lloyd’s members, Nomina No 035 LLP and Nomina No 342 LLP for £700,000, who have a combined 2013 underwriting capacity of £1.7m.

Lloyd’s corporate members are companies that invest in Lloyd’s syndicates to provide them with underwriting capital. Hampden says Nameco participates in a similar spread of syndicates to its own portfolio.

Hampden expects to include the new acquisition in the renewed collateralised quota-share reinsurance arrangement for its 2014 account.