CVE Culver Hldgs

RNS Number:5839N
Culver Holdings PLC
08 February 2008


                                 PRESS RELEASE

FOR IMMEDIATE RELEASE - 8 FEBRUARY 2008

Culver Holdings plc

Culver acquires two companies and gets direct access to the Lloyd's market

Culver Holdings plc announces the acquisitions of 81 per cent. of the issued
share capital of aviation specialist broker AMS Corporate Risks Ltd. ("AMS") and
the whole of the issued share capital of Lloyd's broker LPH Pitman Ltd ("LPH").
The aggregate initial consideration for the acquisitions is �134,346 paid in
cash at completion and up to a further �38,443 payable within six weeks, both
funded from a new bank borrowing facility.  Deferred consideration of up to
�12,900 will be payable following the first anniversary of completion, dependent
on the continuation of terms of business between LPH and certain underwriters.

LPH is an established Lloyd's broker, having been in business since 1932.  LPH
currently specialises in placing aerospace and related risks into the Lloyd's
market and has in recent years also placed other classes of risks into the
Lloyd's market, including professional indemnity, political risks and directors
and officers. AMS is a specialist aviation broker involved principally in
emerging markets with a particular emphasis on the fast growing Eastern European
and Russian markets.

The acquisitions will give the Culver Group a new niche area of activity and
also a direct access to the Lloyd's market which should enable the group to
improve its service to customers and the margin it earns as well as facilitating
the Group's entering other specialist niche areas.

In the 10 month period to its financial year end, 31 December 2007, AMS achieved
net brokerage income of �329,430 and made a loss before taxation of �41,641. Its
gross assets at 31 December 2007 were �253,548 and its net assets were �8,687.
LPH currently has no clients other than AMS's and all of its business is
reported as turnover by AMS.  Its costs have been funded by management charges
levied on AMS.  In the year ended 31 December 2007, it made a loss of �159,123
on no reported turnover reflecting mainly a number of non-recurring items.  Its
gross assets at 31 December 2007 were �141,493 and its net assets were �9,070.

The shares in AMS have been acquired from Aerospace Management Capital Ltd (a
company controlled by Mr Jeremy Leggett) and the share capital of LPH has been
acquired from LPH Group Limited (a company in which Mr Leggett is a significant
shareholder).

Both companies will operate under the direction of Culver's insurance broking
subsidiary Culver Insurance Brokers Limited ("CIB").  The existing directors of
AMS and LPH, except Mr Leggett, will continue as executives of the businesses
and will continue to own the remaining 19 per cent. of the issued share capital
of AMS.  David Sullivan and Robert Lewis (Chief Executive and Managing Director
respectively of CIB) will be appointed to the board alongside them.  Mr Leggett
has entered into a two year consultancy arrangement with AMS.

Commenting on the acquisitions David Sullivan, Chief Executive of CIB said: "
This is a major strategic development for Culver Insurance Brokers, taking us
from being another substantial regional broker to being a fully fledged Lloyd's
broker.  This should allow us to reduce our cost of access to the Lloyd's market
for our traditional business and also broaden our product and service offering
and our geographical reach.

The acquisition also gives us the tools to develop market niches in which we are
already operating, such as wholesale broking, professional indemnity and trade
credit to their full potential and add further niches such as aviation broking."

Trading update

These acquisitions were in mind in September last year and were alluded to when
Culver announced its interim results to 30 June 2007.  The protracted
negotiation process has involved the Group in greater than anticipated expense
and has also delayed the booking of income at a satisfactory level by the new
teams recruited in the middle of 2007.  In the employee benefits and financial
planning segment of the Group's business, a number of additional producers have
been recruited during the last quarter and the early signs are that they are
beginning to produce expected levels of income although the impact of this will
only emerge in 2008.  As a result, the Group will report a significant loss for
the second half of 2007, largely resulting from the inevitable costs of new
production staff being borne in advance of the achievement of expected income
streams.

The board considers that the acquisitions announced today will enhance the
Group's existing business. It continues to believe that the changes and
additions made since the change of management in the insurance broking segment
are leading the Group in the right direction and that the benefits will be
recognised by shareholders over the years to come.


For further information please contact:

John Biles      )    020 7456 1352             Culver Holdings plc/
David Sullivan  )                              Culver Insurance Brokers Ltd


ENDS

Information for Editors:

Culver

Culver Holdings plc was founded in 1991 by John Biles and Richard Read, former
partners in Touche Ross as an investment vehicle listed on the London Stock
Exchange.

Since then, Culver has successfully invested in the following Motor
distribution, Travel insurance, Property development & Media.

Culver is now dedicated to growing its fee based advisory services in
consulting, wealth management and employee benefits alongside its �20 million
plus commercial insurance broking business.

Culver employs approximately sixty people in offices in London, the Thames
Valley, and South Wales.

Culver Insurance Brokers

Culver Insurance Brokers is a general insurance broker authorised and regulated
by the Financial Services Authority, with offices in London, Cardiff and the
Thames Valley. It employs 35 staff across all offices with a client list ranging
from small owner managed companies through to internationally recognised
multinationals.

During 2007 Culver Insurance Brokers established existing specialist teams to
develop the Professional Indemnity and Trade Credit sector, to fit alongside its
existing specialisms in Property Owners, Construction, Entertainment & Leisure,
and Charities.




                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

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