HAMILTON, Bermuda, Oct 18, 2002 /PRNewswire-FirstCall via COMTEX/ -- White
Mountains Insurance Group, Ltd. (NYSE: WTM) announced today that it has reached
an agreement in principle to place $225 million of equity securities based on a
common share price of $295 per share. Convertible preference shares of White
Mountains will be sold for $200 million to an existing institutional investor of
White Mountains. The convertible preference shares will have terms similar to
those issued in connection with the acquisition of CGU Corporation in June 2001.
These convertible preference shares will be exchanged for 677,966 common shares
of White Mountains if shareholder approval is received for the transaction
pursuant to New York Stock Exchange requirements. White Mountains intends to
seek shareholder approval at its 2003 Annual Meeting. 84,745 common shares of
White Mountains will be sold for $25 million to a separate investor.
White Mountains expects to complete this transaction promptly. The proceeds of
this transaction are expected to be applied toward repayment of a $260 million
convertible note that was issued in connection with the acquisition of OneBeacon
Insurance Group (formerly CGU) from CGNU plc in June 2001. This note matures on
November 29, 2002.
White Mountains is a Bermuda-domiciled financial services holding company traded
on the New York 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 1995
The information contained in 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 "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
- growth in 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
- 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 with 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 continued availability of capital and financing;
- general economic, market or business conditions;
- business opportunities (or lack thereof) that may be presented to and
- competitive forces, including the conduct of other property and casualty
insurers and reinsurers
- changes in applicable domestic or foreign laws or regulations, our
competitors or our clients;
- an economic downturn or other economic conditions adversely affecting
our financial position;
- loss reserves established subsequently proving to have been inadequate;
- other factors, most of which are beyond our 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 us will be realized or, even
if substantially realized, that they will have the expected consequences to, or
effects on, us or our business or operations. White Mountains assumes no
obligation to update publicly any such forward-looking statements, whether as a
result of new information, future events or otherwise.
SOURCE White Mountains Insurance Group, Ltd.
CONTACT: Dennis Beaulieu for White Mountains Insurance Group, Ltd., +1-
Copyright (C) 2002 PR Newswire. All rights reserved.