Sirius Group Acquires Old Lyme Runoff Portfolio
Transaction led by White Mountains Solutions
HAMILTON, Bermuda, Jan. 6, 2012 /PRNewswire/ -- Sirius International Insurance Group, Ltd. (Sirius Group), a wholly owned subsidiary of White Mountains Insurance Group, Ltd. (NYSE: WTM), announced today that through a subsidiary it had acquired the runoff loss reserve portfolio of Old Lyme Insurance Company Ltd. (Old Lyme) – a Bermuda reinsurer in runoff since 2008. Old Lyme loss reserves of approximately $23 million were transferred via novation agreements into a Bermuda reinsurance subsidiary of Sirius Group.
The transaction closed on December 30, 2011 and was led by White Mountains Solutions – the specialist runoff acquisition team of Sirius Group. Old Lyme is the seventh runoff acquisition White Mountains Solutions has completed. "We are pleased by the successful conclusion of the Old Lyme transaction," commented Neal Wasserman, President of White Mountains Solutions. "This was a somewhat unusual transaction structure for the runoff sector – and represents an example of our flexibility in working with clients to find creative solutions for bringing closure to their legacy liabilities."
Sirius Group is a wholly owned subsidiary of White Mountains Insurance Group, Ltd. White Mountains Insurance Group, Ltd. is a Bermuda-domiciled financial services holding company traded on the New York Stock Exchange and the Bermuda Stock Exchange under the symbol WTM. Additional financial information and other items of interest are available on the company's website at www.whitemountains.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This press release may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included or referenced in this release which address activities, events or developments which we expect or anticipate will or may occur in the future are forward-looking statements. The words "will," "believe," "intend," "expect," "anticipate," "project," "estimate," "predict" and similar expressions are also intended to identify forward-looking statements. These forward-looking statements include, among others, statements with respect to White Mountains':
- changes in adjusted book value per share or return on equity;
- business strategy;
- financial and operating targets or plans;
- incurred losses and the adequacy of its loss and loss adjustment expense reserves and related reinsurance;
- projections of revenues, income (or loss), earnings (or loss) per share, dividends, market share or other financial forecasts;
- expansion and growth of our business and operations; and
- future capital expenditures.
These statements are based on certain assumptions and analyses made by White Mountains in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors believed to be appropriate in the circumstances. However, whether actual results and developments will conform to our expectations and predictions is subject to a number of risks and uncertainties that could cause actual results to differ materially from expectations, including:
- the risks associated with Item 1A of White Mountains' 2010 Annual Report on Form 10-K;
- claims arising from catastrophic events, such as hurricanes, earthquakes, floods or terrorist attacks;
- the continued availability of capital and financing;
- general economic, market or business conditions;
- business opportunities (or lack thereof) that may be presented to it and pursued;
- competitive forces, including the conduct of other property and casualty insurers and reinsurers;
- changes in domestic or foreign laws or regulations, or their interpretation, applicable to White Mountains, its competitors or its clients;
- an economic downturn or other economic conditions adversely affecting its financial position;
- recorded loss reserves subsequently proving to have been inadequate;
- actions taken by ratings agencies from time to time, such as financial strength or credit ratings downgrades or placing ratings on negative watch;
- other factors, most of which are beyond White Mountains' control.
Consequently, all of the forward-looking statements made in this press release are qualified by these cautionary statements, and there can be no assurance that the actual results or developments anticipated by White Mountains will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, White Mountains or its business or operations. White Mountains assumes no obligation to publicly update any such forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE White Mountains Insurance Group, Ltd.
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