Press Releases
Catlin Group Limited announces intention to proceed with initial public offering in the UK
HAMILTON, Bermuda – Catlin Group Limited, the international property and casualty insurance and reinsurance group, today announces its intention to proceed with an initial public offering of common shares and admission to the London Stock Exchange plc.
It is intended that the initial public offering (the “Offering”) will be completed in April 2004, and that common shares in Catlin will be sold to institutional investors in the United Kingdom and internationally.
Catlin underwrites a broad variety of specialty insurance and reinsurance business through three underwriting platforms: Syndicate 2003 at Lloyd's, Catlin Insurance Company Ltd. in Bermuda (CICL) and the UK branch of CICL (CICL-UK). For the year ended 31 December 2003, Catlin's gross premiums written totalled nearly US$1.2 billion, a 66% increase over 2002. Net income after tax amounted to US$127.0 million for a return on average equity of 22.1%. The Group's combined ratio for 2003 was 86.9%. As at 31 December 2003, the Group had total assets of nearly US$2.4 billion and shareholders equity of US$639 million.
Both Syndicate 2003 and CICL have been assigned financial strength ratings of ‘A' (Excellent) by A.M. Best Company. Syndicate 2003's Best rating is superior to the ‘A-‘ (Excellent) rating assigned by A.M. Best to the overall Lloyd's market.
The Offering will comprise US$200 million of primary common shares issued by Catlin and an additional amount of secondary common shares sold by investors that are existing shareholders of the Group. The proceeds from the new common shares to be issued by Catlin will be used to support the Group's underwriting and for general business purposes.
Goldman Sachs International, JPMorgan and UBS Investment Bank are acting as joint global co-ordinators, joint bookrunners and joint sponsors to Catlin in connection with the Offering. Cazenove is co-broker to the company and a co-lead manager. The other co-lead managers of the Offering are ABN AMRO Rothschild, Citigroup Global Markets Limited and Fox-Pitt, Kelton.
Commenting on the Group's proposed listing on the London Stock Exchange, Sir Graham Hearne, Chairman of Catlin, said:
“The Catlin Group today announces its intention to float alongside excellent financial results for 2003. I am delighted that this IPO will give investors the opportunity to share in the exciting future of the Group.”
Stephen Catlin, the Group's chief executive officer, said:
- “The decision to seek a listing on the London Stock Exchange is another milestone in the evolution of the Catlin Group, which since 1988 has consistently outperformed the Lloyd’s market as a whole. We believe that we are distinctively positioned to take advantage of profitable opportunities in global property and casualty insurance and reinsurance markets.”
For more information contact:
| Catlin Group Limited | ||
| James Burcke, Head of Communications | Tel: | +44 (0)20 7458 5710 |
| Mobile: | +44 (0)7958 767 738 | |
| E-mail: | james.burcke@catlin.com | |
| Gavin Anderson & Company | ||
| Neil Bennett | Tel: | +44 (0)20 7554 1400 |
| E-mail: | nbennett@gavinanderson.co.uk | |
| Liz Morley | Tel: | +44 (0)20 7554 1400 |
| E-mail: | emorley@gavinanderson.co.uk | |
| Goldman Sachs | ||
| John Rafter | Tel: | +44 (0)20 7774 1000 |
| JPMorgan | ||
| Robert Thomson | Tel: | +44 (0)20 7325 1000 |
| UBS Investment Bank | ||
| Oliver Pawle | Tel: | +44 (0)20 7567 8000 |
Information About Catlin Group Limited
Catlin Group Limited is an underwriter of international specialty property/casualty insurance and reinsurance. Over its 20 year history, Catlin has expanded from its traditional base at Lloyd's and has built a distinctive and efficient infrastructure comprised of: a Bermuda holding company; underwriting platforms at Lloyd's, in Bermuda and in the UK company market; and a network of owned offices in the United States, United Kingdom, Asia and Continental Europe. Catlin believes that this structure provides it with considerable scope for earnings growth and a high degree of capital flexibility, and provides the Group with access to the world's major insurance and reinsurance marketplaces.
Catlin believes that its forward-looking approach to business, realistic and flexible approach to underwriting cycles and commitment to gross underwriting profit have allowed it to grow significantly and to generate consistent returns in excess of the Lloyd's market average.
The Group's three underwriting platforms are:
- Syndicate 2003 at Lloyd’s. Syndicate 2003, which is entirely funded by Catlin and managed by Catlin Underwriting Agencies Limited, is the ninth largest syndicate at Lloyd’s based on 2004 stamp capacity of £500 million ($950 million). The syndicate writes a wide range of specialty property and casualty insurance and reinsurance.
- Catlin Insurance Company Ltd. (CICL). CICL, a Class 4 insurer and reinsurer licensed in Bermuda, began underwriting in 2002 and writes property treaty and casualty treaty reinsurance as well as property and casualty insurance for US companies on a surplus lines basis.
- UK Branch of Catlin Insurance Company Ltd. (CICL-UK). The UK Branch of CICL was approved by the UK Financial Services Authority in December 2003 and began underwriting on 1 January 2004. It underwrites specialty lines of property and casualty insurance and reinsurance in parallel with Syndicate 2003. It also writes property, general liability, professional indemnity, directors’ and officers’ liability and crime insurance for UK businesses on a stand-alone basis.
Other Catlin Group offices located in the US, UK, Singapore, Malaysia and Germany underwrite property and casualty insurance and reinsurance business on behalf of the Group’s three underwriting platforms. In total, the Catlin Group underwrites 30 classes of property and casualty insurance and reinsurance.
For the year ended 31 December 2003, Catlin wrote gross premiums totalling nearly US$1.2 billion, a 66% increase over 2002. Net income after tax amounted to US$127.0 million for a return on average equity of 22.1%. The Group's combined ratio for 2003 was 86.9%. As at 31 December 2003, the Group had total assets of nearly US$2.4 billion and shareholders equity of US$639 million.
Both Syndicate 2003 and CICL have been assigned financial strength ratings of ‘A' (Excellent) by A.M. Best Company. Syndicate 2003's Best rating is superior to the ‘A-‘ (Excellent) rating assigned by A.M. Best to the overall Lloyd's market.
The contents of this announcement, which has been issued by Catlin Group Ltd (“Catlin”) and is the sole responsibility of Catlin, have been approved solely for the purposes of Section 21 (2) (b) of the Financial Services and Markets Act 2000 by Goldman Sachs International of Peterborough Court, 133 Fleet Street, London EC4A 2BB, J.P. Morgan Securities Ltd. of 125 London Wall, London EC2Y 5AJ and UBS Limited of 1 Finsbury Avenue, London EC2M 2PP.
Goldman Sachs International, J.P. Morgan Securities Ltd. and UBS Limited (together the “Joint Global Co-ordinators”) are acting for Catlin and no one else in connection with the proposed offer (the “Global Offer”) of common shares in Catlin issued and to be issued in connection with the Global Offer (the “Shares”) and will not be responsible to anyone other than Catlin for providing the protections afforded to clients of the Joint Global Co-ordinators, nor for giving advice in relation to the Global Offer or any information contained herein.
This announcement does not contain or constitute or form part of any offer or invitation, or any solicitation of an offer, for securities and any purchase of or application for securities of Catlin pursuant to the Global Offer should only be made on the basis of the information contained in the formal listing particulars to be issued in connection with the Global Offer. The price and value of, and the income from, securities may go down as well as up. Persons needing advice should consult a professional adviser.
This announcement is not an offer of securities for sale in the United States. The Shares have not been and will not be registered under the US Securities Act of 1933, as amended, (the “Securities Act”) and may not be offered or sold in the United States unless registered under the Securities Act or pursuant to an exemption from such registration. Catlin does not intend to make a public offering of the Shares in the United States.
The Shares will not qualify for distribution under any of the relevant securities laws of Canada or Japan nor has any prospectus in relation to the Shares been lodged with the Australian Securities and Investment Commission. Accordingly, absent registration or an available exemption from such requirements, the Shares may not be offered or sold, directly or indirectly, in or into Australia, Canada or Japan.
The Global Offer and the distribution of this announcement and the other documents or other information relating to the Global Offer may be restricted by law in certain jurisdictions.
No action has been taken by Catlin or the Joint Global Co-ordinators or any of the underwriters of the Global Offer that would permit the Global Offer, any offer of the Shares and/or possession or distribution of this announcement or any other offering or publicity material relating to the Global Offer and/or the Shares in any jurisdiction where action for that purpose is required, other than to certain investors in the United Kingdom. Persons into whose possession any of the documents or other information contained herein comes are required by Catlin to inform themselves about and to observe any such restrictions.
This announcement may include "forward-looking statements". All statements other than statements of historical facts included in this announcement, including, without limitation, those regarding Catlin's financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating to Catlin's products and services) are forward-looking statements.
Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of Catlin to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. These factors include but are not limited to those described in Part 4: Risk Factors and elsewhere in the formal listing particulars to be issued in connection with the Global Offer.
Such forward-looking statements are based on numerous assumptions regarding Catlin's present and future business strategies and the environment in which Catlin will operate in the future. These forward-looking statements speak only as at the date of the document or other information concerned. Catlin expressly disclaims any obligations or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein, to reflect any changes in Catlin's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
Information in this announcement or any of the documents relating to the Global Offer and/or the Shares cannot be relied upon as a guide to future performance.
Stabilisation\FSA