Financials Acquisition Corp. has announced the establishment of London Innovation Underwriters (LIU), a venture that will be merged with and listed on London's Main Market. The London-based special purpose acquisition vehicle intends to form a business combination with LIU, which will subsequently raise a substantial amount of capital through a public float.
The newly merged entity aims to deploy funds into the renowned Lloyd's of London insurance market. This strategic move will provide investors with an efficient means of accessing lucrative returns in the Lloyd's insurance market, eliminating the need for substantial goodwill payments or additional fee structures.
With LIU gaining access to Lloyd's strong track record of innovation and underwriting expertise, the company plans to utilize a third-party protected cell risk transformation vehicle.
"We are confident that LIU will provide investors with an exceptional opportunity to gain diversified exposure to the Lloyd's market, coupled with liquidity," stated Chief Executive Will Allen, expressing satisfaction with the positive response received from both investors and underwriters.
Amidst favorable market conditions, Financials highlights that the Lloyd's market is currently experiencing its best rating environment in years. Consequently, LIU is targeting an average return on equity exceeding 20% over the next five years.
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