Scots entrepreneur and 60 of his staff scoop multi-million windfall from insurance firm sale

Argenta, the insurance firm headed by Scottish oil tycoon Alasdair Locke has been sold in a £142.5 million deal to industry giant Hannover RE.

Banffshire-based Locke, who as chairman of the company had a 45 per cent stake, has pocketed £64 million from the sale.

He has also made sure that 60 of his 160 mainly London-based staff, from office workers to executives, will share a £35.6 million pot resulting from the sale.

The windfall is down to the fact that when developing the company from its infancy over a decade ago Locke put 25 per cent of the shares in the firm into an employee trust to benefit his staff.

Argenta, which is the owner of Lloyd’s managing agent Argenta Syndicate Management Limited and Lloyd’s members’ agent, Argenta Private Capital Limited, which also manages Lloyd’s Syndicate 2121, with a stamp capacity for 2017 of £300 million, will now dispose its entire share capital to Hannover RE, the world’s third largest reinsurer.

Argenta currently supplies almost £1.8 billion of investor capacity to the Lloyd’s market with its Syndicate 2121 focusing on short-tail property business and specialty lines.

During 2016 it had gross written premium of £280 million.

Hannover RE is now able to boost its growth strategy, according to Mr Locke.

“We are delighted to have reached agreement to become part of such a strong and well-respected reinsurance group,” he said.

“Hannover Re has been a valued business partner of Syndicate 2121 for many years, both as a reinsurer and capital provider and we believe that this transaction is in the best interests of Argenta, its customers and its staff.”

Ulrich Wallin, CEO of Hannover RE, said: “We… have found an ideal partner for the London Market in Argenta.

“We have been familiar with Syndicate 2121 and its reliable and successful staff for many years now. It is therefore in Hannover Re’s interest that the experienced team continues to pursue its winning strategy.”