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Montagu outlines 300m pounds deal

John Moore
Thursday 21 October 1993 23:02 BST
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THE LARGEST vehicle for bringing company money to the Lloyd's insurance market yesterday provided further details of its plans, writes John Moore.

London Insurance Market Investment Trust (Limit), devised by the merchant bank Samuel Montagu and brokers James Capel, has been designed to provide investors with a dual opportunity of participating in the Lloyd's insurance market on a limited liability basis while also investing in a managed portfolio of listed equities and sterling fixed interest securities.

Constructed as an investment trust, its shares will be listed on the Stock Exchange by means of a placing and offer for subscription. It is expected that 25 per cent of the shares will be offered to the public.

Already the new vehicle has gained binding commitments to participate in 98 underwriting syndicates within the Lloyd's insurance market with the provision of pounds 480m of underwriting capacity.

The precise amount of capital to be raised through the placing and offer for subscription will be determined immediately before the issue of the formal prospectus.

Based on the underwriting capacity committed to Limit, the board expects the capital raised to be about pounds 280m, although this could rise to pounds 300m if commitments in respect of underwriting capacity for 1994 are also increased.

Jonathan Agnew, Limit's chairman, said his group 'expects to be the largest Lloyd's-related investment trust listed on the Stock Exchange in 1993. With its portfolio of committed underwriting capacity and relatively low expense base, it represents a major opportunity to participate in the Lloyd's market for the first time . . . on a limited liability basis.'

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