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Hiscox's shares rose as much as 14 per cent on Monday after Insurance Insider reported that
Hiscox,
Analysts have said a potential offer would come as no surprise, with
"We have written about M&A across the insurance sector in the recent past and highlighted the Lloyds' names as being vulnerable,"
"Other listed names are also vulnerable to takeover given the low price to tangible net asset values and high returns on equity,"
Hussain added.
M&A in the Lloyd's market has been quiet since the last major deal in 2017. The number of listed Lloyd's insurers fell from 10 in 2007 to three from 2017 onwards - Beazley,
"We see all three players as potentially being attractive targets for M&A," JPMorgan analysts said in a note. "The main Beazley and Hiscox syndicates are among the top 10 largest individual syndicates at Lloyd's, making them some of the most obvious targets, in our view."
The CEO of Japanese group
JPMorgan analysts said any Lloyd's transactions would likely bring "synergies on costs, capital and reinsurance for the major Japanese insurers".
"We are not surprised by the emergence of M&A speculation within the subsector," said
(c) 2024 City A.M., source