German insurance group Talanx will become a top five non-life Chilean insurer if it completes a deal announced today (19 December) to acquire Inversiones Magallanes
The sale of an aviation broking subsidiary last week to rival JLT Group should enable Towergate to make the £31mn in Q1 coupon payments that are due to bondholders of its £1bn debt mountain.
The need for diversification rather than scale is driving much of the strategic evolution in the reinsurance sector, according to Bob Deutsch, the industry figure now spearheading the roll-out of Hamilton Insurance Group.
Last month, the price of Towergate's unsecured debt collapsed in the secondary markets as fears grew that the UK broker consolidator would fail to make the £31mn coupon payments due in the first quarter on the various layers of its debt mountain.
Despite the development of a two-tier reinsurance market, it is the need for diversification rather than simply scale that is a driving much of the strategic evolution in the sector.
