Companies: OIH   

City speculation has forced Omega Insurance Holdings to disclose that it is in discussions with several parties potentially interested in bidding.

The AIM-quoted insurer, which was mooted in the past as a potential partner for Hardy Underwriting and others, is now based in the offshore insurance tax haven of Bermuda, where its Omega Specialty Insurance arm underwrites similar risks to those covered by Omega’s Lloyd’s Syndicate 958. Focusing on ‘unglamorous’ smaller US company business, where rate-cutting competition is less intense than for ‘big ticket’ items, the company increased pre-tax profits 119 per cent to £10.2 million in the first half of last year on gross written premiums up 113 per cent to £87 million.

Recommended by Growth Company Investor at 153p in September, Omega shares are 16p up today at 167p, valuing the company at £246.5 million. Hold on.

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