Tindall Riley (TR) has agreed to sell Carina, its fixed premium P&I Managing General Agent (MGA), to The MECO Group. TR said that Carina, set up in 2012, was” a successful and well managed specialised fixed premium P&I provider”.
The terms of sale have been agreed, but the transfer will only complete once all the regulatory and underwriting approvals have been received, which is scheduled before the end of 2018.
TR said that the focus of the parties has been on ensuring a seamless transfer, based on a ‘business as usual’ approach, under which the current Carina team will transfer across to MECO and continue to run Carina as part of the MECO Group.
From the date of transfer Carina will become a MECO brand and MECO will assume TR’s role as the MGA that owns and operates Carina. MECO will take over all TR’s responsibilities as Managers of Carina and the existing Carina team will relocate to MECO’s London office. With effect from the date of transfer, MECO will take sole responsibility for current policies and all prior years.
The underlying security of Carina, as a Lloyd’s based product, will remain unchanged.
TR chairman Simon Scriven said that Carina had performed well in a challenging cycle and the decision to sell was not an easy one, “but we concluded that, despite its success, operating Carina as an MGA was not in-line with our key strategic objectives as one of the leading mutual management operations. We chose MECO Group as the new home for the Carina team because it is the oldest and most well-respected marine MGA in London.”
MECO Group chief executiver Christopher Else said that “the acquisition of Carina represents a big step in the development of the MECO Group. Carina is a strong brand managed by an experienced and professional team that will fit well within the MECO Group. The last few years have been challenging in the marine insurance industry, but all our brands have been profitable during turbulent times and in a fast-changing market, the opportunities for expansion are genuinely exciting. The acquisition of Carina is just one example of how the MECO Group is well placed to grow in the current climate”