Financials Acquisition Corp - Cayman Islands-based special purpose acquisition company sponsored by FINSAC LLP - Says London Innovation Underwriters Ltd has been established to be a listed operating company that will deploy funds into the Lloyd's of London insurance market. Financials Acquisition was listed on the London Main Market back in April 2022 and currently has until December 31 to complete an acquisition. Says business combination with LIU will be accompanied by an effort to raise "significant sum of equity capital" as part of LIU's listing on the London Main Market. Engages UBS AG London Branch and HSBC Bank PLC as joint global co-ordinators for the capital raise.

Financials Acquisition says it hopes to create "an efficient vehicle for investors to access attractive returns in the Lloyd's insurance market without paying significant goodwill or adding further fee structures". Notes strong interim results issued by Lloyd's on Thursday, saying the market is "experiencing its best rating environment in many years". Expects LIU to have enough capital to support up to GBP1 billion of underwriting capacity.

"We are pleased with the initial reaction we have received from both investors and underwriters and look forward to the next stage of the transaction," says Chief Executive Officer Will Allen.

By Tom Waite, Alliance News editor

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