Amlin PLC's $5.3 billion takeover by a Japanese competitor has put the remaining four publicly traded Lloyd's of London insurers in the spotlight for a possible takeover.
Beazley PLC, Hiscox Ltd., Lancashire Holdings Ltd. and Novae Group PLC all rallied in London trading after MS&AD Insurance Group Holdings Inc. agreed to pay 670 pence a share for Amlin — a 36 percent premium to Monday's closing price. The deal, which represents 2.4 times net tangible book value, is the highest multiple paid for a Lloyd's insurer.
"With only a limited number of quoted Lloyd's insurers left, we believe that all listed companies are likely takeover targets," said Paris Hadjiantonis, an analyst at Keefe, Bruyette & Woods in a note to clients on Tuesday. The recent wave of insurance mergers will "lead to further consolidation within Lloyd's."