General insurer Amlin said today (Thurs) it had decided not to make an offer for rival Chaucer Holdings.
"Having completed its review of Chaucer, Amlin has concluded that sufficient value for its shareholders could not be created by proceeding with a transaction," Amlin said in a statement.
Amlin said on June 9 it was in talks about making an offer for Chaucer to create the leading player in the Lloyd's of London insurance market.
Amlin said at the time a combination could offer substantial synergies through economies of scale.
Analysts said if the deal went ahead it could kick start consolidation in the Lloyd's market, which has been long overdue because there are too many small listed companies.
In a separate statement on Thursday, Chaucer said it remained committed to developing its leading franchise at Lloyd's and to delivering attractive returns for shareholders across the insurance cycle. "Trading in all areas for the year to date has been encouraging," it said.
Chaucer also said it will maintain a previously announced progressive dividend policy which aims to increase payouts by about 10 percent per year until 2008.
