16th Dec 2005 08:01
Lancashire Holdings Limited16 December 2005 Lancashire Holdings Limited For publication in the United Kingdom and Bermuda only. Not for release,publication or distribution in the United States of America, Australia, Canada, South Africa, the Republic of Ireland or Japan Hamilton, Bermuda 16 December, 2005 LANCASHIRE ADMITTED TO TRADING IN LONDON ON AIM Introduction Lancashire Holdings Limited ("Lancashire" or the "Company") is delighted toannounce that its common shares have been admitted to trading on AIM followingthe raising of approximately US$1.1 billion (before expenses) in new capital.Unconditional dealings in the Company's common shares will therefore commencetoday. Lancashire's ticker is LRE. The Rating Committee of A.M. Best Company, Inc. notified Lancashire, on anindicative basis, 9 December 2005 that it intends to issue a Financial StrengthRating of A- (Excellent) to Lancashire Insurance Company Limited subject toconfirmation of receipt of necessary funds, which confirmation is expected to bemade on or before 19 December 2005. Lancashire's Proposed Business Activities In the retrocession and reinsurance classes, Lancashire intends to focus on nonmarine property catastrophe retrocession and marine and energy excess of lossreinsurance. In the insurance classes, the business will concentrate on theoffshore and onshore energy, property direct and facultative, propertyterrorism, marine (hull, total loss and war) and aviation terrorism classes. Lancashire expects that all of its insurance and reinsurance business will beintroduced by brokers - both the large international groups and the smaller,specialist intermediaries. Lancashire conducts its operations and is managedand controlled from Bermuda. A UK incorporated marketing company, LancashireInsurance Marketing Services Limited, has been formed for business introductionpurposes. Board and Management Lancashire has assembled a carefully selected team chosen for theircomplementary skills, insurance market following and experience of building abusiness. Bob Spass of Capital Z is non-executive Chairman. Bob was aco-founder of both Insurance Partners, L.P. and Capital Z, two private equityfirms specialising in the financial services arena. Richard Brindle is ChiefExecutive Officer and Chief Underwriting Officer. Richard brings a strongunderwriting track record to the business from his time at Syndicate 488 andSyndicate 2488 at Lloyd's. Ralf Oelssner, Colin Alexander, William Spiegel ofCypress and Barry Volpert of Crestview are confirmed as non-executive directors. Neil McConachie will join the Board as Chief Financial Officer and ChiefOperating Officer from Montpelier Re where he is, inter alia, currentlyTreasurer and Chief Accounting Officer. Alex Richards (formerly of RenaissanceRe), Alex Maloney (formerly of Zurich Global Energy) and Charles Mathias(formerly of RK Harrison) are also joining Lancashire's executive team. For publication in the United Kingdom and Bermuda only. Not for release,publication or distribution in the United States of America, Australia, Canada, South Africa, the Republic of Ireland or Japan Financing Lancashire's founders and related investors have subscribed for approximatelyUS$560 million of common shares. This investor group includes Capital Z,Crestview Partners, Cypress, Moore Capital, Och-Ziff and SAB Capital. In addition, a number of leading international investors have subscribed forUS$403 million of common shares. Lancashire has also issued a total of approximately US$125 million of debtcapital through the issue of trust preferred securities and subordinated notes. Together with initial capital subscribed by Lancashire's founders, the Companyhas raised total equity and debt capital of approximately US$1.1 billion. Merrill Lynch is acting as Nominated Adviser and Broker to Lancashire and actedas Sole Bookrunner and Lead Manager on the placing of common shares (the "Placing"). Benfield Advisory and Kinmont acted as Lancashire's joint financialadvisers. JPMorgan Cazenove acted as Joint Lead Manager on the Placing; Fox-Pitt, Kelton and Teather & Greenwood were Co-Lead Managers. It should be noted that although A.M. Best has indicated that (subject toreceipt of necessary funds) Lancashire Insurance Company Limited will be grantedan "A-" financial strength rating, if A.M. Best is unable or unwilling for anyreason to grant the initial "A-" financial strength rating to LancashireInsurance Company Limited after the Group has demonstrated to A.M. Best thereceipt of necessary funds, it is likely that the common shares would besuspended and the Company may seek to return the net proceeds of the Placing toshareholders. For publication in the United Kingdom and Bermuda only. Not for release,publication or distribution in the United States of America, Australia, Canada, South Africa, the Republic of Ireland or Japan Contacts: Merrill LynchRupert Hume-Kendall +44 (0)207 628 1000Simon FraserMatthew Thomson Benfield AdvisoryTristan McDonald +44 (0)207 578 7000Ross Milburn KinmontGavin Kelly +44 (0)207 493 8488John O'Malley Financial DynamicsRobert Bailhache +44 (0)207 269 7200Dominick Peasley Merrill Lynch, JPMorgan Cazenove, Fox-Pitt, Kelton, Teather & Greenwood,Benfield Advisory and Kinmont, each of which is authorised and regulated in theUK by the Financial Services Authority, each acted for the Company and no-oneelse in connection with the Placing and Admission and will not be responsible toanyone other than the Company for providing the protections afforded to theirrespective clients or for providing advice in relation to the Placing andAdmission, this announcement or any other matter. Merrill Lynch'sresponsibilities as the nominated adviser to the Company are owed solely to theLondon Stock Exchange and are not owed to the Company or to any Director or toany other person, whether in respect of any decision to acquire common shares,in relation to any part of this announcement or otherwise. In connection with the Placing, no common shares of the Company were marketed toor were made available for purchase by the public in the United Kingdom, Bermudaor elsewhere. The release, publication or distribution of this announcement in certainjurisdictions may be restricted by law and therefore persons in suchjurisdictions into which this announcement is released, published or distributedshould inform themselves about and observe such restrictions. For publication in the United Kingdom and Bermuda only. Not for release,publication or distribution in the United States of America, Australia, Canada, South Africa, the Republic of Ireland or Japan No offer, invitation or inducement to acquire common shares or other securitiesin the Company or any other company is being made by this announcement. Certain statements contained in this announcement may constitute forward-lookingstatements. Any such forward-looking statements involve risks, uncertainties andother factors that may cause the actual results, performance or achievements ofLancashire, or industry results, to be materially different from any futureresults, performance or achievements expressed or implied by suchforward-looking statements. These forward-looking statements speak only as ofthe date of this announcement and there can be no assurance that the results andevents contemplated by such forward-looking statements will, in fact, occur. TheCompany and the Directors expressly disclaim any obligation or undertaking torelease publicly any updates or revisions to any forward-looking statementcontained herein, save as required to comply with any legal or regulatoryobligations (including the AIM Rules). This announcement is not an invitation nor is it intended to be an inducement toengage in investment activity for the purpose of Section 21 of the FinancialServices and Markets Act 2000 ("FSMA"). The Company's common shares were in anyevent placed only with (i) persons who have professional experience in mattersrelating to investments and who are investment professionals within the meaningof Article 19(5) of the Financial Services and Markets Act 2000 (FinancialPromotion) Order 2005 of the United Kingdom (the "Financial Promotion Order") or(ii) persons who fall within Article 49(2)(a) to (d) ("high net worth companies,unincorporated associations etc.") of the Financial Promotion Order (all suchpersons together being referred to as "relevant persons"). Any investment orinvestment activity to which this announcement relates is available only torelevant persons in the United Kingdom and will be engaged in only with relevantpersons. Anyone other than a relevant person must not rely on this announcement. The contents of this announcement, which have been prepared by and are the soleresponsibility of Lancashire Holdings Limited, have been approved by MerrillLynch International of Merrill Lynch Financial Centre, 2 King Edward Street,London EC1A 1HQ, solely for the purposes of section 21(2)(b) of FSMA. THE INFORMATION CONTAINED HEREIN IS NOT FOR PUBLICATION OR DISTRIBUTION INTO THEUNITED STATES, AUSTRALIA, CANADA, SOUTH AFRICA, THE REPUBLIC OF IRELAND ORJAPAN. NEITHER THIS ANNOUNCEMENT NOR ANY COPY OF IT MAY BE TAKEN OR DISTRIBUTEDOR PUBLISHED, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES, AUSTRALIA, CANADA,SOUTH AFRICA, THE REPUBLIC OF IRELAND OR JAPAN OR DISTRIBUTED TO U.S. PERSONS. For publication in the United Kingdom and Bermuda only. Not for release,publication or distribution in the United States of America, Australia, Canada, South Africa, the Republic of Ireland or Japan THE MATERIAL SET FORTH HEREIN IS FOR INFORMATIONAL PURPOSES ONLY AND IS NOTINTENDED, AND SHOULD NOT BE CONSTRUED, AS AN OFFER OF SECURITIES FOR SALE INTOTHE UNITED STATES OR ANY OTHER JURISDICTION. SECURITIES MAY NOT BE OFFERED ORSOLD IN THE UNITED STATES ABSENT REGISTRATION UNDER THE U.S. SECURITIES ACT OF1933, AS AMENDED OR AN APPLICABLE EXEMPTION FROM REGISTRATION. THE SECURITIESOF THE COMPANY DESCRIBED HEREIN HAVE NOT BEEN AND WILL NOT BE SO REGISTERED.THERE WILL BE NO PUBLIC OFFER OF SECURITIES IN THE UNITED STATES, AUSTRALIA,CANADA, OR JAPAN OR ANY OTHER JURISDICTION. Stabilisation / FSA This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Lancashire Holdings