Cathedral Capital Up for Sale

By Marc Castro

Apr 17, 2013 08:34 AM EDT

According to reports, Lloyd's of London insurer Cathedral Capital is up on the auction block. The firm established in 1997 and where 63% is owned by Alchemy, the private equity group is being priced between GBP250 million and GBP300 million. 

Alchemy had purchased the firm back in 2007 for an enterprise value of GBP160 million. 

The sale was first reported by Sky News and is the latest Lloyd's managing agent to be sold off in recent years. Previous sales was the takeover by the Apollo and CVC takeover of Brit Insurance and the sale of Hardy's to insurer CNA Financial.

In 2012, Cathedral posted modest profits of GBP11.6 million and paid out 83% of its premiums in claims. THe firm employs about 100 individuals and has been rated as among the top five in Lloyd's ninety or so syndicates in terms of underwriting performance. 

Many insiders say that Cathedral would most likely attract interest from private equity groups, pension funds and trade buyers, all of whom have accelerated their participation in the insurance industry capital markets.

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