Lloyd’s insurer Sportscover and Bermuda-based property and casualty insurer Hamilton Insurance Group have entered into exclusive talks on a strategic partnership.
In what have been described as ‘wide-ranging’ talks, specialist sports and leisure insurer Sportscover has revealed that discussions currently underway include the future control of Sportscover Underwriting Limited and Sportscover’s Lloyd’s managing agency.
The discussions also include the provision of capital to Syndicate 3334 for the 2015 year of account and joint business development initiatives.
Sportscover said in a statement that it had been looking for an equity and capital partner to assist with its growth plans for some years.
Founder of Sportscover and the current chairman of the group holding company Wild Goose Holdings, Peter Nash, said he was pleased with the way that discussions were progressing and that he expected to be able to announce a definitive agreement “soon”.
“We have built up a very good understanding and rapport and both parties feel that a strategic partnership will result in significant future business opportunities to our respective companies,” Nash said.
The deal will provide capital that will enable the wider Sportscover group to pursue a path of “acquisition and product development”
“It will also provide capital and growth opportunities for the managing agency and syndicate and we will be increasing our own capital participation in the Sportscover syndicate as a result,” Nash said.
Property and casualty insurer Hamilton was formed in December 2013 with technology partner Two Sigma Investments LLC and is led by insurance industry veteran Brian Duperreault.
Duperreault said the development of the group’s international platform includes establishing a presence at Lloyd’s, which he described as “an iconic institution whose stature in the insurance industry can’t be overstated”.
“Access to global licenses as well as underwriting expertise makes a Lloyd’s platform highly desirable. We are committed to showing Lloyd’s that our participation will enhance the Lloyd’s franchise over time.
“In that context, Sportscover has established skills and expertise in a niche market that we believe can be further developed with our capital and strategic input. We’ve developed a very good relationship with Peter and his team, and we’re impressed with their portfolio of business."
Any deal for the change of control of Sportscover Underwriting Limited will require approval from Lloyd’s and APRA