December 17, 2001
"The Cypress Group commits $150 million to help found Montpelier Re, New Bermuda-based Reinsurance Company; Montpelier Re receives its underwriting license and opens for business"
The Cypress Group, the New York based private equity firm, announced today that it has committed $150 million to help establish Montpelier Re Holdings Ltd. and its wholly-owned subsidiary, Montpelier Reinsurance Ltd., a Bermuda domiciled Class 4 insurance and reinsurance company. Montpelier has been sponsored by White Mountains Insurance Group, Ltd. which with its affiliates contributed $200 million of equity and Benfield Group plc, which contributed $25 million of equity. The balance of the Company's approximately $1 billion of capital is comprised of equity contributed by other investors and $150 million of bank debt.
Montpelier has received its underwriting license and has begun writing business. The Company's targeted lines of business include property catastrophe excess of loss reinsurance, property risk excess of loss reinsurance, facultative reinsurance, whole account quota share reinsurance and property retrocession reinsurance. Other lines of business may include aviation reinsurance, casualty reinsurance, workers' compensation catastrophe and personal accident catastrophe reinsurance.
Jack Byrne, Chairman of White Mountains, will serve as Chairman of the Board and Anthony Taylor, previously Deputy Chairman of Wellington Underwriting plc, will serve as President and CEO and Chief Underwriting Officer. Jack and Anthony have between them 50 years of experience in the worldwide reinsurance business.
Jack Byrne, Chairman of Montpelier Re, said: "There have been a number of reinsurance vehicles starting-up lately, but with the high caliber of Montpelier's management team and the backing of White Mountains, Benfield Group and our co-investors, I firmly believe Montpelier stands head and shoulders above the competition, giving us a significant head-start. We are fortunate to have a chief executive as talented and experienced as Tony Taylor, and I am pleased that we can bring his expertise and fresh capital to our customers."
William L. Spiegel, Managing Director of The Cypress Group, said: "We are delighted to join with White Mountains, Benfield and our co-investors to establish Montpelier Re. Reinsurance has emerged as a dynamic product in the insurance marketplace, and Jack Byrne, Tony Taylor and their team are well positioned to lead future innovation for the industry. We look forward to working with them."
About Montpelier Re
Montpelier Re was established in December 2001 in Bermuda to create a strong platform to deliver innovative reinsurance solutions to global customers. Founded by White Mountains Insurance Group, Benfield Group and other co-investors, it has a strong and stable capital base of approximately $1.0 billion.