Liverpool Victoria Insurance Take Over Highway Insurance

Liverpool Victoria Insurance Company, a mutual society would be taking over UK’s car insurance company Highway Insurance is a deal decided worth about 150 million pounds. This was announced by both the companies on Thursday. Highway Insurance is being given 73.35 pence/share by Liverpool Victoria, in addition to the short-term surplus of 1.65 pence, which amounts to a total of 75 pence/share. It is interesting to note here that the shares of Highway Insurance were up by 14 per cent at 73 pence on Thursday morning. This price signifies a premium of 47% to the closing value 49.75 pence of Highway, the day before they stated talks of a takeover at an advanced level by a single company. The share prices immediately shot up by 30 percent with this announcement. This takeover was described by Liverpool as a “strong industrial logic” of two businesses in the insurance sector. With this agreement Liverpool hopes to join the league of top five insurance companies by 2012. According to the CEO of Highway Insurance, Andrew Gibson, this deal will yield interesting financial results and a joint business will provide greater occasion in the insurance market.

Leave a Reply