Bermuda-based insurer Catlin Group has won agreement for its takeover of Lloyd’s of London underwriter Wellington Plc from 85 percent of Wellington shareholders, meaning the purchase is now “unconditional”.

In a statement on Monday, Catlin also said Lloyd’s had approved the cessation of Wellington’s Syndicate 2020, meaning Catlin will benefit from full ownership of the enlarged capacity of its Syndicate 2003 with effect from December 31.

“Approximately 38 percent (by capacity) of the unaligned members of Syndicate 2020 have accepted the all cash compensation offer made to them and 62 percent have accepted the cash and reinsurance option,” Catlin said.

Catlin said that, as of Monday, it had received valid acceptances from Wellington shareholders in respect of 433,038,085 Wellington Shares which Catlin will count towards satisfaction of the acceptance condition, representing approximately 85 percent of Wellington’s existing issued share capital.

Catlin group chief executive Stephen Catlin said: “I am very pleased to announce that Catlin’s offer for Wellington has been declared unconditional. The acquisition creates material benefits for both companies and their shareholders, as well as to clients and brokers.

“We are now ready to take advantage of the opportunities that the acquisition presents to us. We have done much work since the offer was announced to plan the integration of the two businesses. As a result of that work, we will consolidate our underwriting teams in London this week, and integration planning for other parts of the business is progressing well.”

Catlin offered to take over Wellington in November, thus bringing two of the largest Lloyd’s underwriters under one roof.

Catlin, which moved to Bermuda earlier this tear and also has a Bermuda operating subsidiary, is part of a wave of Lloyd’s underwriters that have moved to Bermuda or set up operations here.

Others include Hiscox, which has just completed redomiciling on the Island and set up a Bermuda subsidiary after the record 2005 hurricane season, Omega, which is in the process of redomiciling, Amlin, which formed a Bermuda subsidiary in late 2005, and Advent and Brit Insurance, which are now setting up Class 3 retrocessional underwriters.

Catlin shareholders support Wellington takeover