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Narragansett Bay Insurance Company Announces Completion
of $200 Million Funding Agreement
Investment Is One of the Largest in the Rhode Island Insurance Industry
PAWTUCKET, RHODE ISLAND JANUARY 8, 2008
Narragansett Bay Insurance Company and affiliates ("NBIC") announced today the completion
of a funding agreement totaling $200 million from three private equity investors:
Pine Brook Capital Partners LP, Soros Strategic Partners LP, and RenaissanceRe Holdings
Ltd. The equity will be used to grow the company's homeowners business along
the Eastern seaboard, insuring both coastal and inland properties and offering new
options to homeowners in these large but challenged markets.
The transaction is subject to the approval of the Rhode Island Department of Business
Regulation.
Headquartered in Pawtucket, Rhode Island, NBIC offers specialty insurance products
and services to homeowners through a network of independent insurance agents in
Rhode Island, Massachusetts, and New York. The company emerged from the 158-year-old
Pawtucket Mutual Insurance Co., which was originally acquired by NBIC's parent company,
Blackstone Financial Group, Inc., in December 2005. NBIC is led by a new management
team that includes Stewart H. 'Nick' Steffey, Jr., chairman and chief executive
officer, Geoffrey E. Hunt, executive vice president, Albert J. Pereira, president
and chief underwriting officer, Patrick S. Wilmerding, vice president, strategic
planning, and Sean F. Murphy, senior vice president and chief financial officer.
Mr. Steffey has over 35 years of insurance experience. He served as founding president
and chief executive officer of Liberty International Holdings Inc., a $4.5 billion
business which is a subsidiary of the Liberty Mutual Group. Mr. Hunt has over 20
years of financial and insurance experience, including managing Liberty Mutual Group
subsidiaries, which controlled a $2.5 billion business, selling personal and small
commercial property and casualty insurance products through independent insurance
agents. Mr. Pereira has over 25 years of insurance company management experience
and was formerly president of Summit Insurance Company, a leading underwriter for
insurance agents in Rhode Island.
"When we took over the business we found a strong operational core that we could
build on. We have refocused the company, providing a solution for homeowners who
have experienced disruption in the marketplace and who are looking for superior
products and service," said Nick Steffey. "This investment will enable us to enter
new markets and provide coverage for even more homeowners."
NBIC's experienced team of underwriting professionals utilizes sophisticated catastrophe
modeling, innovative service, and cutting edge technology to provide coverage for
homeowners.
"We're focused on tailoring coverage to individual needs, regardless of where our
insureds are located," said Geoff Hunt, adding, "NBIC is offering consistent coverage
in catastrophe prone areas where some competitors have exited."
"We're here to cover loss, but we're also here to prevent loss. Our focus is on
risk management and loss prevention, and we will strive to become an industry leader
in these important areas," explained Al Pereira.
ABOUT PINE BROOK ROAD PARTNERS LLC
Pine Brook Road Partners LLC ("Pine Brook") is a New York-based private equity firm
established in 2006 by a team of experienced private equity professionals to make
business building and growth capital investments, primarily in the energy and financial
services sectors, where the firm's partners have more than 100 years of experience.
Pine Brook typically backs experienced management teams in building businesses that
have the potential for significant long-term capital appreciation. For more
information, please visit the company's web site at www.pinebrookpartners.com.
ABOUT SOROS STRATEGIC PARTNERS L P
Soros Strategic Partners LP ("SSP") is a private investment vehicle intended for
long-term duration investments primarily for the benefit of Mr. George Soros and
members of the Soros family. SSP focuses on capital-intensive start-ups, buyouts,
and growth equity transactions, and seeks to acquire world class assets that can
generate strong and growing cash flows.
ABOUT RENAISSANCE RE HOLDINGS LTD.
RenaissanceRe Holdings Ltd. ("RenRe"), through its operating subsidiaries, is a
global provider of reinsurance and insurance to cover the risk of natural and man-made
catastrophes. Based in Bermuda, RenRe is one of the world's largest and most successful
catastrophe reinsurers. Principally through its Ventures Unit, RenRe also creates
and manages joint ventures, customized reinsurance products, and pursues select
strategic investments.
Skadden, Arps, Slate, Meagher & Flom LLP acted as outside legal advisor to Blackstone
Financial Group, Inc. and Dewey & LeBoeuf LLP acted as legal advisor to the
investor group in this transaction.
For more information contact Suzanne Gilbar at 401-495-0748 |
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