Wellington discusses Names share deal

Wellington and the Association of Lloyd's Members (ALM) met last Friday to discuss Wellington's proposed offer of Wellington Re shares to Names.

Wellington agreed, earlier this year, to offer Names up to £15m of shares in Wellington Re's holding company. This was in response to the shifting to Wellington Re what Names saw as the best business.

It is understood a prospectus could come out within weeks detailing the final leg of this deal.

The ALM took a combative stance on this subject in its October bulletin. It said: "It is to be hoped that David Gittings [board member of Wellington Underwriting] will seek to ensure that Wellington plays fair with Names in future."

It added: "The majority of bespoke Names were rightly infuriated when 40% of their best business was hived off into Wellington Re earlier this year, and the overseas Names have still not been paid for this."

ALM chief executive Anthony Young, who attended the meeting with Wellington's David Gittings, said the ALM was focusing particularly on these overseas Names because some could not take advantage of the share offer due to local restrictions.

Commenting on progress since the meeting, he said: "We will have a better idea when the prospectus comes out."

Wellington declined to comment.