HAMILTON, Bermuda, April 26 /PRNewswire-FirstCall/ -- As part of its
ongoing development in the areas of insurance and alternative asset
management, NATIXIS, in partnership with White Mountains Insurance Group, Ltd.
(NYSE: WTM), have created Pentelia Capital Management ("PCM"), an asset
management company based in Bermuda, and have closed PCM's first fund,
Pentelia Limited, with total capital commitments of approximately US$ 600
Pentelia Limited is a highly innovative alternative investment fund
designed to participate in a broad array of rapidly-growing insurance risk
securitization markets. The fund will invest in a diversified portfolio of
life and non-life insurance-linked assets including adverse mortality bonds,
weather derivatives, terrorism insurance, life settlements, cat bonds and
property catastrophe reinsurance. The fund has created a new Bermuda
reinsurance company, Pentelia Re, in order to be able to offer direct
reinsurance coverage on a collateralized basis if desired. The fund's stated
investment strategy is to invest in a number of remote- probability insurance
events and to deliver a consistent return with little to no correlation with
PCM, based in Hamilton, Bermuda, specializes in the underwriting and
management of insurance-linked assets and investments and has specific
expertise in each of the asset classes mentioned above.
White Mountains Insurance Group, Ltd. is the parent of White Mountains Re
Group, Ltd., a Bermuda-based global reinsurer. Pentelia Limited's business
plan is complementary to White Mountains Re.
NATIXIS, the "investments and projects bank," is the jointly held bank of
Caisse d'Epargne and Banque Populaire and is active in corporate and
investment banking, asset management, private equity and private banking,
financial services and receivables management. NATIXIS has nearly 23,000
employees and had net banking income of euro 7.2bn in 2006.
NATIXIS holds leading positions in its businesses in France, Europe and
worldwide. For example, it is the largest asset management bank in France
with euro 584bn under management and the largest bank in France for employee
savings. NATIXIS is recognized worldwide for its expertise in credit
insurance, private equity and structured finance (including real estate,
commodities, asset-backed finance and leveraged finance).
Through its subsidiary IXIS Corporate & Investment Bank ("IXIS CIB"),
NATIXIS is very active in insurance risk asset classes. IXIS CIB has been a
significant factor in the creation and execution of a number of insurance risk
securitizations and climate-related transactions on behalf of insurance and
industrial clients and has distinguished itself by participating in the first
securitization of an auto insurance portfolio (the SPARC transaction) and the
first securitization of a pandemic risk (the OSIRIS transaction).
White Mountains 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 at the Company's web site located at www.whitemountains.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of
This earnings 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':
growth in book value per share or return on equity;
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' 2006 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
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
an economic downturn or other economic conditions adversely affecting
its financial position;
recorded loss reserves subsequently proving to have been inadequate;
v other factors, most of which are beyond White Mountains' control.
Consequently, all of the forward-looking statements made in this earnings
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.
CONTACT: David Foy Tel: (203) 458-5850
SOURCE White Mountains Insurance Group, Ltd.
CONTACT: David Foy of White Mountains Insurance Group, Ltd.,