Share price jumps 12% following stock exchange announcement by Omega board
Omega Insurance's share price rose 12% today after the company confirmed it is the subject of takeover interest.
Following Insurance Times' report this morning, the Omega board made a statement to the stock exchange at 12.45pm, after which Omega's share price jumped.
Omega Insurance is the Bermuda-based holding company for Lloyd’s managing agent Omega Underwriting, which manages Syndicate 958.
The company confirmed that parties had shown interest in taking over the entire Omega Insurance operation, comprising US, European and Bermudan units, as well as the Lloyd’s managing agent.
The company has distributed marketing documents to the interested parties, but said that these were not information memoranda, and that discussions were only at very early stages. It added that no formal offers have been made so far.
A spokesperson for Omega said: “The board has to act in shareholders’ interests in responding to interest from other companies.”
In 2006, Omega’s Syndicate 958 wrote £250m in gross premiums, making pre-tax profits of £37m with a combined ratio of 85%.
