Sportscover and Bermuda-based property and casualty insurer Hamilton Insurance have announced they are in discussions over the sale of Sportscover’s Lloyd’s syndicate.

Hamilton will be able to increase the size of syndicate 3334’s capacity while the sale will free up capital for Sportscover’s expansion plans, Sportscover founder Peter Nash says.

“It is a question of size,” he told insuranceNEWS.com.au in an exclusive interview. “In order for us to grow to the size we would like to be, we need somebody with much deeper pockets than ours.”

He gave a “ballpark” figure for the deal of £15-£20 million ($26.1-$34.8 million).

Lloyd’s and the Australian Prudential Regulation Authority have to approve a sale, but Mr Nash hopes it can be closed by year-end.

Syndicate 3334 specialises in sports and leisure business and will write around £48 million ($83.51 million) this year. But Mr Nash sees it growing to well over £100 million ($174 million) in coming years due to the growth opportunities available.

Hamilton CEO, former Marsh & McLennan President and CEO Brian Duperreault, says access to global licences and underwriting expertise “makes a Lloyd’s platform highly desirable”.

“Sportscover has established skills and expertise in a niche market that we believe can be further developed with our capital and strategic input.”

For more details on the transaction and Sportscover’s growth plans, see our regular bulletin on Monday.