b'TABLE OF CONTENTSReinsurance To Close market. Marco was busy alsoElsewhere across Continental Europe, the entering the runoff sector of the ILS market withannouncement of Alm. Brand A/Ss all-cash the purchase of Guernsey-based Humboldt Reacquisition of the Danish business of Codan Limited. This is an interesting development whichForsikring for US$2.52 billion from Intact Financial supports the opportunity floated in recent times ofCorporation (Intact) and Tryg A/S (Tryg), which how the dynamic legacy market can partner withis expected to close in the first half of 2022 subject the ILS sector to provide solutions beneficial toto antitrust clearance, demonstrates the continuing each strategy. Whilst the ILS market hasappetite for market share consolidation of P&C traditionally targeted shorter tail books ofinsurance providers in the European market. The business, casualty and longer tail books presentdeal also represents a positive outcome for Intact the challenge of how to remain invested for aand Tryg, the former of whom is reported to intend longer investment horizon. Meanwhile, Premiato deploy the cash proceeds of the sale to settle its showed with its recent sidecar launch that ILSdebts used to fund its joint acquisition with Tryg of investors are also interested in providing capacityRSA Insurance Group plc, on which we have to the legacy spacea perfect symbioticcommented in the previous edition ofrelationship for some investors. [See ILS andthis publication.Convergence MarketsSidecars and ManagedStrategic buyers continued to explore opportunities Funds for more details on this transactions]. to expand their presence in new territories. Further The Lloyds market was relatively quiet on the M&Ato their consortium take-private acquisition of front during 2021, possibly a reflection of COVID-19Hastings Group plc (Hastings), Finnish carrier claims working through the claims processes andSampo Oyj (Sampo) acquired South African Rand some of the smaller and underperformingMerchant Investment Holding Limiteds (RMI) 30% syndicates falling prey to the Lloyds review exerciseminority interest in Hastings and its option to and going into runoff. Scale very much matters andacquire 10% of Hastings share capital for US$905 the level or barrier to critical mass gets higher andmillion, which combined with consideration from its higher, with Agora Holdings, Inc. going through aninitial acquisition provided a total of US$2.5 billion auction sales process during the period and others,for its acquisition of 100% of Hastings share capital. including The Vibe Group, Pioneer UnderwritersSampos buy-out of RMIs minority in Hastings and Acapella all having closed down in priordemonstrates the trend of insurance carriers periods. Aggregate capacity for the Lloyds marketseeking to build upon focused growth strategies, as a whole has increased materially going into 2020,with Sampos expansion within the UK digital motor but the trend sees that extra capacity being sharedand home insurance market reflecting its intended across the flagship and more establishedlong-term strategy for expansion in the P&C sector.syndicates. Beazley plc, for example, reported theOther buyers pursued transactions which supported largest percentage increase in 2022 capacity and instrategies to strengthen their existing insurance terms of its listed peer group ended the year withbusiness. As part of its takeover of UBI Banca, Intesa the best performance in terms of share priceSanpaolo SpAs (Intesa) US$476 million acquisition development over the period.MAYER BROWN |21'