Hamilton to acquire Pembroke Managing Agency, Ironshore Europe from Liberty Mutual

Hamilton Insurance Group, Ltd., has signed a definitive agreement with Liberty Mutual Group to acquire the Pembroke Managing Agency Limited platform at Lloyd’s and Ironshore Europe DAC (IEDAC).

Upon closing, Hamilton said in a statement, the transaction will almost double Hamilton’s total premium base.

Specialty insurance & reinsurance organization

“Given our objective of building a global, diversified specialty insurance and reinsurance organization, our agreement with Liberty is a meaningful step towards achieving that goal,” said Hamilton’s chief executive officer, Pina Albo. “In addition to the opportunities this transaction presents at Lloyd’s, in Europe, and in the U.S., we will bring together talented teams who are aligned on culture, underwriting discipline, and a commitment to providing superior customer service. The result will be a company well-positioned to respond to our clients’ and the market’s needs.”

Under the terms of the agreement, Hamilton will be responsible for the 2019 Year of Account for Syndicate 4000 and Liberty will retain the corporate member for prior years.

Eliminates business overlap for Liberty

“For Liberty, the transaction supports our international specialty business by eliminating the multiple Lloyd’s syndicates and business overlap that resulted from Liberty Mutual’s acquisition of Ironshore,” noted Matthew Moore, the president of Liberty Specialty Markets. “Clarifying our operations — including selling Pembroke and focusing on our Lloyd’s Syndicate 4472 — makes it easier for brokers and customers to partner with us to meet their risk management needs.”

Liberty’s Syndicate 4472 is the third largest syndicate at Lloyd’s, offering a range of coverages including aviation, casualty, construction, contingency, cyber, marine, energy, equine, financial lines, fine art and specie, legal indemnities, personal accident, political violence, professional indemnity, property, specialty binders, surety, and war and terrorism.

Deal expected to close later in 2019

The companies expect the transaction to close later this year, subject to the fulfillment of customary closing conditions and obtaining the necessary regulatory approvals.

TigerRisk Capital Markets & Advisory served as financial advisor and Debevoise & Plimpton LLP served as legal advisor to Hamilton.

Evercore acted as financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP acted as legal advisor to Liberty.

Learn more: www.hamiltongroup.com; www.libertymutualinsurance.com.

Victoria Prussen Spears, Esq., (vspears@alm.com) is associate director of the Insurance Coverage Law Center, editor of the Insurance Coverage Law Report, and senior vice president at Meyerowitz Communications Inc.