Tawa to acquire Bermuda-based insurer Island Capital

British insurer and run-off investor Tawa (LON:TAW) said Friday it has agreed to buy 94.3% of Bermuda-based insurance firm Island Capital and its UK subsidiary, Island Capital (Europe), for USD7.4m (EUR5.8m) plus an additional sum of up to USD15m depending on the achievement of certain milestones.

In a statement, Tawa explained that the acquisition would enable it to access the credit and political risk insurance market and would expand its overall business and geographical footprint. The company added that the transaction, which would be paid with existing resources, is expected to be neutral to its net assets.

After closing of the deal, Island Capital's president and CEO Paul Mooney will continue to manage the business.

The transaction is pending regulatory approval.

Country: UK; Bermuda;

Sector: Insurance

Target: Island Capital (Europe) Ltd; Island Capital Ltd

Buyer: Tawa Plc

Deal size in USD: 22.4m

Type: Corporate acquisition

Financing: Existing resources

Status: Agreed

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