14th Jun 2007 07:02
Lancashire Holdings Limited14 June 2007 Lancashire Holdings Limited 14 June 2007 Lancashire enters into Contingent Equity Arrangement Lancashire Holdings Limited (the "Company") announced today that it has enteredinto a contingent equity arrangement with a large financial institution. Under the agreement the Company has an option to issue up to 9,786,000 commonshares (approximately 5% of the Company's issued share capital) at a price pershare equal to the greater of the market value of the shares at the time ofexercise or US$5.00. The agreement expires on November 30, 2007. No commonshares were issued on entering into this agreement. Neil McConachie, Chief Financial Officer commented: "This arrangement provides a committed source of equity capital at a guaranteedfloor price which the Company, at its discretion, can access. While we have nocurrent plans to exercise the option, the transaction reinforces our strategy toactively and prudently manage capital through the cycle." Neil McConachie added "We believe our business plan, as a diversified directspecialty insurance writer, lends itself to strong performance through hard andsoft cycles. We underwrite a diverse worldwide portfolio of short-tail propertyrisks. Programs are mostly written on a direct basis, and the majority of the2007 book is not expected to be significantly exposed to natural catastrophes.We believe this strategy will generate above average returns for shareholdersover time." This announcement does not constitute an offer, invitation or inducement toacquire shares or other securities in the Company in any jurisdiction. For further information, please contact: Lancashire Holdings +1 441 278 8950Neil McConachie Financial Dynamics +44 20 7269 7114Robert BailhacheNick Henderson Kekst & Company Inc.Michael Herley (1) 212 521 4897Mark Semer (1) 212 521 4802 www.lancashiregroup.com About Lancashire Lancashire, through its UK and Bermuda-based insurance subsidiaries, is a globalprovider of specialty insurance products. Its insurance subsidiaries carry theLancashire group rating of A minus (Excellent) from A.M. Best with a stableoutlook. Lancashire has capital in excess of US$1 billion and its common sharestrade on AIM under the ticker symbol LRE. Lancashire is headquartered atMintflower Place, 8 Par-La-Ville Road, Hamilton HM 08, Bermuda. The mailingaddress is Lancashire Holdings Limited, P.O. Box HM 2358, Hamilton HM HX,Bermuda. For more information on Lancashire, visit the Company's website atwww.lancashiregroup.com. NOTE REGARDING FORWARD-LOOKING STATEMENTS CERTAIN STATEMENTS MADE IN THIS ANNOUNCEMENT THAT ARE NOT BASED ON CURRENT ORHISTORICAL FACTS ARE FORWARD-LOOKING IN NATURE INCLUDING, WITHOUT LIMITATION,STATEMENTS CONTAINING WORDS 'BELIEVES', 'ANTICIPATES', 'PLANS', 'PROJECTS','INTENDS', 'EXPECTS', 'ESTIMATES', 'PREDICTS', 'MAY','WILL', 'SEEKS', 'SHOULD'OR, IN EACH CASE, THEIR NEGATIVE OR COMPARABLE TERMINOLOGY. ALL STATEMENTS OTHERTHAN STATEMENTS OF HISTORICAL FACTS INCLUDING, WITHOUT LIMITATION, THOSEREGARDING THE GROUP'S FINANCIAL POSITION, RESULTS OF OPERATIONS, LIQUIDITY,PROSPECTS, GROWTH, BUSINESS STRATEGY, PLANS AND OBJECTIVES OF MANAGEMENT FORFUTURE OPERATIONS (INCLUDING DEVELOPMENT PLANS AND OBJECTIVES RELATING TO THEGROUP'S INSURANCE BUSINESS) ARE FORWARD-LOOKING STATEMENTS. SUCH FORWARD-LOOKINGSTATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER IMPORTANTFACTORS THAT COULD CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THEGROUP TO BE MATERIALLY DIFFERENT FROM FUTURE RESULTS, PERFORMANCE ORACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. THESEFORWARD-LOOKING STATEMENTS SPEAK ONLY AS AT THE DATE OF THIS ANNOUNCEMENT OROTHER INFORMATION CONCERNED. LANCASHIRE HOLDINGS LIMITED EXPRESSLY DISCLAIMS ANYOBLIGATION OR UNDERTAKING (SAVE AS REQUIRED TO COMPLY WITH ANY LEGAL ORREGULATORY OBLIGATIONS (INCLUDING THE AIM RULES)) TO DISSEMINATE ANY UPDATES ORREVISIONS TO ANY FORWARD-LOOKING STATEMENTS CONTAINED HEREIN TO REFLECT ANYCHANGES IN THE GROUP'S EXPECTATIONS WITH REGARD THERETO OR ANY CHANGE IN EVENTS,CONDITIONS OR CIRCUMSTANCES ON WHICH ANY SUCH STATEMENT IS BASED. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Lancashire Holdings