Somers Limited Explained

Somers Limited
Type:	Public company
Traded As:	SOM.BH
Industry:	Finance
Foundation:	2012
Location:	Hamilton, Bermuda

Somers Limited is an investment holding company based in Hamilton, Bermuda.^[1] Its shares are traded on the Bermuda Stock Exchange.^[2]

Somers Limited is a financial services investment platform, and the company targets investments primarily in the banking, wealth management and asset financing sectors. Somers Limited has contracted with an external investment manager to manage its investments.

Somers' investments are predominantly in Australia, Bermuda, and the UK. Somers' gross assets at December 31, 2021 was US$694.5 million.^[3]

Portfolio Summary

As at December 31, 2021 Somers Limited (Somers) has a relatively concentrated portfolio with investments which are primarily focused on the financial services sector. Geographically, the three key jurisdictions of Australia, Bermuda and the United Kingdom covers 95.7% of total investments. The Somers' portfolio consists of the following:^[4]

Resimac Group Limited has a managed mortgage loan portfolio of approximately A$16 billion. Its primary activities are as mortgage manager, mortgage broker and in addition, originating, servicing and securitising mortgage assets. Its shares are listed on the Australian Securities Exchange, and Somers owns 62.3% of Resimac Group Limited, with the balance owned by institutional and retail investors.

Waverton Investment Management Limited is a London-based specialist investment manager with approximately £12.8 billion funds under management and administration, and Somers has a 62.2% holding in this investment.

PCF Group (formerly Private and Commercial Finance Group) is a long established AIM-listed finance group that was awarded a UK Bank Deposit Taking Licence in 2016. PCF Group's bank is PCF Bank. Somers has a 64.4% holding in PCF Group.

West Hamilton Holdings Limited is a Bermuda Stock Exchange listed property investment and management company with property assets in Bermuda and in which Somers has a 57.1% equity interest.

Thorn Group Ltd is an Australian financial services organisation offering consumer and commercial options for leasing products and financing.

Aura Group is a financial services business.

Other Investments: Somers Limited has a number of other smaller investments which are a mixture of both unlisted and listed holdings. As at December 31, 2021 Somers has funds directly and indirectly under management of over US$24.0 billion^[5] (2021: US$22.9 million).

History

Somers Limited was founded in 2012 as Bermuda National Limited^{[1] [6]} when Bermuda Commercial Bank Limited, founded in 1969, created a new holding company.

In 2013, Somers made acquisitions including:

• Private and Commercial Finance Group plc, and
• Waverton Investment Management, formerly known as J. O. Hambro Investment Management from Credit Suisse Bank

In the 2014 financial year, Somers' key acquisitions included:

• An investment in Ascot Lloyd Holdings Limited bringing Somers' total potential economic interest to 32.5%
• An increased shareholding in Westhouse Holdings plc to 84.6%
• A 6.6% interest in Merrion Capital^[7]
• A 23.8% shareholding in Incol Limited (“Incol”).^[8] Incol is a funding platform for financial institutions

In the 2015 financial year, Somers' key transactions included:

• Sale of holding of shares and convertible loan notes in Private and Commercial Finance Group plc to its wholly owned subsidiary, Bermuda Commercial Bank Limited^[9]
• Acquisition of an additional 1,222,949 shares in West Hamilton Holdings Limited from BCB bringing Somers’ total holdings to 57.1%

In the 2016 financial year, Somers' key transactions included:

• Acquisition of a 79% shareholding in RESIMAC Limited (subsequently merged with ASX listed Homeloans Limited resulting in a 59% holding in Homeloans^[10]), with a combined loan portfolio at the time of A$13 billion
• In September 2016, Somers acquired a 13% economic interest in MJ Hudson^[11]

In the 2017 financial year, Somers' key transactions included:

• RESIMAC Limited merged with Homeloans Limited in October 2016, resulting in a 59% shareholding^[12]
• Sale of holding of all shares in Ascot Lloyd Holdings Limited, to CPL Bidco Limited^[13]

In the 2018 financial year, Somers' key transactions included:

• Acquisition of 38% of AK Jensen's issued shared capital^[14]
• Acquisition of 94.5 million shares in PCF Bank from Bermuda Commercial Bank^[15]
• Sale of holding of all shares in Merrion Capital Limited, to Cantor Fitzgerald Ireland Limited

In the 2019 financial year, Somers' key transactions included:

• Completion of the sale of holdings in Stockdale Securities and Street Capital Group^[16]

In the 2020 financial year, Somers' key transactions included:

• Somers enters an agreement to sell Bermuda Commercial Bank, subject to government and regulatory approvals^[17]
• Somers received final consideration for the sale of holdings in Stockdale Securities^[18]

In the 2021 financial year, Somers' key transactions included:

• Somers acquires 15% stake in Aura Group^[19] a Singapore headquartered, fast-growing alternative investment and wealth management platform.
• Sale of holding of all shares in Bermuda Commercial Bank to Provident Holdings Ltd^[20]
• Investment of A$13.2m in Thorn Group^[21]

Board of directors

• Peter Durhager - Chairman of Somers Limited, Chairman of Ascendant Group Ltd^[22] and the Bermuda Community Foundation,^[23] Non-Executive Director of Harrington Re^[24] and F&G Re, and former President of Renaissance Services Ltd
• Alasdair Younie - Director of ICM Limited, and a Non-Executive Director of Allectus Capital Limited^[25] and West Hamilton Holdings Limited^[26]
• Charles Jillings - Chief Executive of ICM Investment Research Limited and ICM Investment Management Limited,^[27] and a Director of ICM Limited, Allectus Capital Limited^[28] and Waverton Investment Management Limited^[29]
• David Morgan - Non-Executive Director of Waverton Investment Management Limited,^[30] and PCF Group PLC^[31]

Sponsorship

Somers Limited announced in 2014 a four-year corporate sponsorship of the Bermuda Olympic Association, covering the Olympiad including the 2016 Summer Olympics in Rio, Brazil and the 2018 Winter Olympics in Pyeongchang, South Korea.

Notes and References

1. https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=222423662 Somers Limited
2. http://www.bsx.com/CompanyDisplay.asp?CompanyID=137 Bermuda Stock Exchange: Somers Limited
3. Web site: Somers Q1 2022 Financial Results. February 14, 2022. Somers Limited.
4. Web site: Somers Portfolio. January 20, 2022. Somers Limited.
5. Web site: Somers Limited Assets under Management. February 14, 2022. Somers Limited.
6. James Phillipps, JO Hambro Investment Management rebrands as Waverton, Citywire, 13 January 2014
7. Web site: Somers Limited Financial Results for the nine months ended June 30, 2014. September 11, 2014. www.bsx.com.
8. Web site: Somers Limited 2014 Annual Report. February 2015. www.bsx.com.
9. News: Company Overview of Bermuda Commercial Bank Limited. 15 November 2015. Bloomberg Businessweek.
10. News: Homeloans-RESIMAC merger beefs up scale in non-bank mortgage market. 2016-07-21. ABC News. 2017-03-13. en-AU.
11. Web site: Somers Limited Invests In MJ Hudson Holdings. May 11, 2016. bernews.com.
12. Web site: Change of Company Name to Resimac Group Limited. ASX. January 14, 2019.
13. News: Somers Limited Sale of Merrion Capital Holdings Limited Investment. January 14, 2019.
14. Web site: Somers 2018 Annual Report. September 30, 2018. January 14, 2019.
15. Web site: Acquisition of shares in PCF Group plc. Somers Limited. January 14, 2019.
16. Web site: Somers Limited Announces Financial Results. December 14, 2019. Bernews. February 28, 2020.
17. Web site: Somers strikes deal to sell BCB. May 17, 2021. The Royal Gazette.
18. Web site: Somers Limited 2020 Annual Report. May 17, 2021. Bermuda Stock Exchange.
19. Web site: May 12, 2021. Somers acquires 15% of Aura Group. May 17, 2021. Money Management.
20. News: 10 August 2021. Commercial Bank sales pays dividends for Somers investors. The Royal Gazette. 18 August 2021.
21. Web site: January 13, 2022. Somers Limited 2021 Annual Report. January 20, 2022. Somers Limited.
22. News: June 19, 2014. Durhager Elected Chairman of Ascendant Group. The Royal Gazette. September 12, 2018.
23. Web site: Board and Governance. September 12, 2018. Bermuda Community Foundation.
24. Web site: Board of Directors. September 12, 2018. Harrington Re.
25. Web site: Allectus Team profile. 18 August 2021. Allectus Capital Limited.
26. Web site: March 31, 2017. West Hamilton Holdings Ltd. Bermuda Stock Exchange.
27. Web site: ICM Limited Board of Directors. www.icm.limited.
28. Web site: Allectus Team. January 20, 2022. Allectus Capital Limited.
29. Web site: Executive Team. March 31, 2017. Waverton Investment Management.
30. Web site: Waverton's Executive Team. www.waverton.co.uk.
31. Web site: Private and Commercial Finance Group Board of Directors. www.pcfg.co.uk.