City grandees buy Lloyd’s investment firm
The Conservative Party treasurer and former Jardine Lloyd Thompson Group plc director Jonathan Marland has led an investor group of City grandees that has acquired the Lloyd's investment fund manager, Insurance Capital Partners LP (ICP).
ICP - which blamed market conditions for the withdrawal of a planned flotation on the London Stock Exchange's Alternative Investment Market (AIM) in July - will have additional funds to invest in Lloyd's and other London market ventures following the sale of its management company to the group.
Together with support from a Bermudian reinsurer, ICP currently deploys sufficient capital to support £75mn in premium income on syndicates such as Hiscox 33 and Kiln 510. Following the sale, it says it now expects this to increase to at least £100mn in 2007.
Other investors in the group include Michael Spencer, the chief executive of Icap Ltd, the world's largest interdealer broker, hedge fund king Crispin Odey and Carphone Warehouse co-founder David Ross.
Marland commented: "This transaction follows my tradition of backing strong management teams and investing with friends. This vehicle provides an opportunity for investors to participate in a managed portfolio of insurance investments."
ICP - which was owned by the former Lloyd's members' agency CBS Insurance Holdings - had hoped to raise £100mn this summer through an IPO which would have given the company between £250mn-£300mn of Lloyd's capacity to support.