Canopius Managing Agents Ltd

Mandatory Offer

 

Flectat Limited (“Flectat”) is to make an announced auction offer in auction 1 of the 2018 capacity auctions to acquire all of the prospective participations (other than those to which it and its associates are already entitled) on Syndicate 4444 (the “Syndicate”) for the 2019 year of account at a price of 14.05 p per £1 of capacity (the “Offer”).

 

The Offer will fulfil an obligation under the Mandatory Offer Byelaw (No. 5 of 1999) for a mandatory offer to be made to all persons other than Flectat and its associates who, at the time the offer is made, are entitled to make a participation nomination and/or second nomination in respect of the Syndicate.

 

Details of the Offer are set out in a circular (the “Circular”) which was issued, in accordance with the Capacity Offer Rules, on 21 September 2018.

 

Hurricane Florence

 

Hurricane Florence has very recently caused considerable damage to buildings and infrastructure in North and South Carolina. Canopius Managing Agents Limited (“CMAL”) expects that the Syndicate's 2018 year of account will incur liabilities as a result of this event. More details concerning the scale of such liabilities are expected to emerge over the coming weeks. However CMAL considers that they are likely to constitute an earnings event rather than a capital event for the Syndicate.

 

2019 Syndicate business forecast

 

CMAL submitted to Lloyd's on 6 September 2018 a Syndicate business forecast for the 2019 year of account (the “6 September 2019 SBF Submission”). The deadline for approval by Lloyd's of a business plan for the 2019 year of account of an unaligned syndicate is 16 October 2018. CMAL believes that the 6 September 2019 SBF Submission appropriately takes into account substantially all of the communications it has received over recent weeks from the Syndicate Underwriting Performance department at Lloyd's concerning the 2019 syndicate capital and planning process. As at the date of this document CMAL has received initial feedback from Lloyd's on the 6 September 2019 SBF Submission. It is possible that this initial feedback and any further discussions between CMAL and Lloyd's concerning the 6 September 2019 SBF Submission may result in certain amendments being made by CMAL to the 6 September 2019 SBF Submission. Persons receiving the Circular are advised to contact their members’ agents (where applicable) to ensure that they receive information concerning any such amendments before tendering their prospective participations on the Syndicate in response to the Offer. Flectat or CMAL will make an announcement concerning any such amendments through the “Capacity Auctions” section of the Lloyd’s website (www.lloyds.com).

 

 

This announcement has been prepared in accordance with Lloyd’s requirements. Flectat Limited (“Flectat”) has confirmed to Lloyd’s that this announcement complies with the Capacity Offer Rules. This announcement has not been approved by Lloyd’s.

 

This announcement is issued by Canopius Managing Agents Limited (“CMAL”) of Gallery 9, One Lime Street, London EC3M 7HA, which is regulated by Lloyd’s, the Prudential Regulation Authority and the Financial Conduct Authority.

 

This announcement relates to an announced auction offer for capacity on Syndicate 4444 which Flectat is proposing to make.

 

CMAL is the managing agent of Syndicate 4444 and is therefore interested in the proposed announced auction offer.

 

Any person who is considering whether or not to tender his prospective participations on Syndicate 4444 in response to the proposed announced auction offer should read carefully the Circular and the risk factors set out therein and the draft syndicate business forecast for Syndicate 4444 in respect of the 2019 year of account, copies of which are available, free of charge, from CMAL’s offices at Gallery 9, One Lime Street, London EC3M 7HA. Copies of the Circular (and any revised circular which may be issued) may also be obtained from the same address.

 

This announcement does not constitute a solicitation, invitation or offer to persons in any jurisdiction where a solicitation, invitation or offer could be contrary to law.

 

Date issued: 24 September 2018

 

Contact Information

Agency contact name: Adam Timms

Agency contact no: + 44 (0)20 7337 3768

 

 

For auction office use only: D2018002

DISCLAIMER: Lloyd's is not responsible for the content of any auction disclosures, and acts merely as publisher of information provided by managing agents. If you have any questions regarding the content, you should contact the relevant managing agent.

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