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The history of Brit
Brit has had a number of guises since its birth in 1995. It started out life as Benfield & Rea Investment Trust, an investment trust set up by reinsurance broker Benfield and private bank Rea Brothers. It floated on the London Stock Exchange in November 1995. The business plan for the investment trust was that 75% of its capital would be invested in Lloyd's spread vehicles, which were the first form of corporate capital admitted into Lloyd's. These are corporate members that participate on many syndicates. The remaining 25% would be invested in non-quoted insurance companies.
Eckert was a co-founder of the investment trust and became its chief executive in 1999. By that time a number of Brit's investments were near to the maximum percentage of assets that investment trusts are allowed to hold in one investment. The company decided to ditch its investment-trust status and relist as an insurer. It was renamed Brit Insurance.
At the same time it increased its stakes in two businesses, which are essentially the two companies that make up the...