Max Capital to Purchase Imagine's Lloyd's Product

Max Capital Group Ltd. has entered into an agreement to acquire Imagine Group (UK) Limited, a Lloyd’s insurance operation, from Imagine Insurance Company Limited. The agreement also includes the acquisition of Imagine Lloyd’s operations in Denmark and Japan.

Imagine Lloyd’s, through Lloyd’s Syndicates 1400, 2525 and 2526, underwrites a diverse portfolio of specialty risks including property catastrophe, financial institutions, personal accident, employers’ and public liability, and professional indemnity business. Based in London, the business Max Capital has agreed to acquire will complement Max Capital’s current operations in Bermuda, Ireland and the United States.

Total transaction consideration is expected to be approximately £11 million paid in cash derived from ongoing operations. In addition, Max Capital will replace letters of credit totaling approximately £90 million that an affiliate of Imagine has provided to fund Imagine Lloyd’s syndicate commitments.

The acquisition is conditioned on the receipt of various approvals including those from the Financial Services Authority and Lloyd’s. Following completion of the transaction, Imagine Lloyd’s is expected to be re-branded as “Max Lloyd’s Ltd.”