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Lloyd’s insurer picks up Fortis corporate unit

Lloyd’s market insurer Amlin has agreed to buy Fortis Corporate Insurance from the Dutch Government for €350 million ($616 million), attracted by its large commercial portfolio.

Amlin says the acquisition provides product diversity and a strong base in continental Europe.

The Fortis unit writes property and casualty business in the Netherlands and Belgium, reporting gross written premium of €763 million ($1.3 billion) in 2008.

Parent banking and insurance group Fortis earlier reported a full-year loss of €28 billion ($49 billion) after discontinued banking operations humbled the company.

Amlin directors expressed confidence that steps taken to restore company performance “will together provide the foundation for a return to historical levels of profitability”.

The directors claim the deal will reduce Amlin’s exposure to catastrophe losses.