Norwegian marine insurer Skuld has confirmed it is planning to sell its stake in Lloyd’s of London managing agency Asta Capital.
Skuld jointly owns Asta along with Paraline International and finance company ACHP.
Skuld chief executive Stale Hansen told TradeWinds: “We felt the time was good to consider a sale.”
The move follows Skuld’s decision to close down Lloyd’s of London Syndicate 1897 in 2019. The end of its direct commercial relationship with Lloyd's brought its continued involvement with Asta into question.
Asta manages Lloyd’s syndicates and also has a business that develops managing general agents.
Hansen said Skuld’s involvement in Asta had been positive since it took a stake in the company in 2012.
He said that he hoped a deal could be concluded before the end of the year, but he added it is too early to predict the impact on its balance sheet.
The sale is being managed by financial services company Evercore.
Skuld ran up years of losses attempting to develop a marine insurance business out of the Lloyd’s market.
However, it has since had a turnaround in fortunes after it decided to run its hull and machinery business under a new company, Skuld Hull, backed by its own capital.
Skuld’s departure from Lloyd's has also coincided with an improvement in hull and machinery rates, which has helped Skuld Hull demonstrate growth and better results.
According to data provided by the Nordic Association of Marine Insurers, Skuld increased its hull and machinery premium income from $54.9m in 2019 to $89m in 2020.
