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UK P&I Club seeks to raise £50m through hybrid capital

UK Protection and Indemnity Club has unveiled its plans to launch its first hybrid capital calling of £50m.

The London-based mutual insurer, which insures the third-party risks of ships, made the stark announcement as it prepares to increase its solvency requirements inline with new European Union Directive coming into force in 2012.

The Club, which has already secured commitments from a small number of members, hopes the capital raising will provide an additional safeguard against any future requirement to increase solvency capital.

Standard & Poor’s is expected to assign a BBB+ rating to the capital securities, while
UBS is lead manager, bookrunner and structuring advisor.

The capital securities are to be listed on the London Stock Exchange.

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