Investment summary

The boards of Omega and Canopius have reached an agreement on the terms of a recommended cash offer at 67p, valuing Omega at approximately £163.9m (including share capital to be issued). This is a 30.9% premium to the average closing price of 51.2p during the month to 23 March 2012, when Canopius expressed its interest in possibly making a bid, and a premium of 10.7% to the closing price immediately prior to the offer (25 April 2012). Canopius has received irrevocable undertakings to vote in favour of the acquisition from shareholders representing approximately 48.9% of the existing share capital of Omega.

Last updated on 02/05/2012

Industry outlook

US property catastrophe premium rates are increasing, with loss affecting international catastrophe reinsurance rates even more. This is feeding through into modest increases in primary insurance rates.

Last updated on 23/04/2012