IS THIS BUYOUT A SOUND MOVE?
RAKSHIT RANJAN NOBLE
“Following the analyst meeting we are more positive on the quality of Fortis Corporate Insurance’s portfolio and Amlin’s ability to generate its desired synergies and returns from it. However, we do believe that there will be a drag on the share price in the short term due to a potential reduction in the group’s net assets per share which will be driven by the placing of new shares.”
LORNA TILBIAN NUMIS SECURITIES
“Amlin states that it expects the acquisition of Fortis Corporate Insurance to enhance earnings in 2009 and enhance net tangible assets over the medium term. In our view this appears to represent the major deal that Amlin has been looking for, providing both a new leg to the group’s growth prospects and enhancing the potential to write more high margin catastrophe business. We therefore consider this to be a positive development.”