Many might comment that is was only a matter of time before Novae was bought, and I'm sure that Beazley and Hiscox are now even more attractive for those non-Lloyd's carriers seeking to add the the 300+ year old distribution platform to their portfolio...
And so, are independent Lloyd's vehicles a thing of the past?
In a market that is continually under pressure from increasing volumes of alternative capital, ever more competitive rating environments, challenging and costly regulatory changes, amongst many over things, a lot of firms seek economies of scale through M&A. Very rarely are we seeing 1+1=2 however, and with a lower number of individual entities we will ultimately see fewer distinct cultures and underwriting philosophies.
Is the industry in danger of losing it's diversity?
Lloyd's insurer, Novae, is to be bought by Axis Capital for £468m. Axis will pay 700p per share for Novae, a 20 per cent premium to the share price on 4 July and a multiple of 1.5 times the company's book value. "We are very pleased to announce this proposed acquisition of Novae, which will create a $2bn player in the London specialty market, anchored as a top 10 insurer in the Lloyd’s market," Axis chief executive Albert Benchimol said.