Dear friend,

Hats off to Heritage,who fell into the arms of Argo today - what a track record.

The business floated at 78.5p in August 2006 and a dividend or two later it is going for 160p (154p plus another tasty 6p dividend).

Was this set against the backdrop of a hard market with capacity scarce and easy pickings for those left standing?

No. Quite the opposite.

What other insurance related investment would have allowed you to double your money in 18 months, (despite losing your star underwiter ahead of the IPO)? You'd have to think long and hard.

It's why Lloyd's is still the world capital for (re)insurance entrepereneurs.

To start up on Bermuda these days, you don't much change out of a billion dollars.

But back in London, if you've still got the ear of the members' agents, you're in with a fighting chance.

Long live capitalism!