Press Releases
Catlin Group Limited announces indicative price range for global offering of common shares
HAMILTON, Bermuda – Catlin Group Limited, the international property and casualty insurer and reinsurer, today announces further details relating to an initial public offering of common shares (the “Offering”) and admission to the London Stock Exchange plc.
Catlin announces an indicative price range of between 350 pence and 420 pence per common share, valuing the Group at between US$1,018 million to US$1,208 million (£560 million and £664 million) following the completion of the Offering. The offer price will be determined following a book-building process targeted at institutional investors in the UK and internationally. The institutional roadshow and book-building period will begin today and will end on 31 March 2004. The offer price is expected to be announced, and conditional dealings commence, on 1 April 2004. It is expected that the listing will take place and unconditional dealings will commence on 6 April 2004.
The Offering will comprise US$200 million (£110 million) of primary common shares issued by Catlin and up to US$250 million (£138 million) of secondary common shares sold by investors that are existing shareholders of the Group, giving a total offer size of up to US$450 million (£248 million). 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 Capital Markets Limited and Fox-Pitt, Kelton.
Commenting on the Group’s proposed listing on the London Stock Exchange, Stephen Catlin, the Group’s chief executive officer, said:
- “The flotation of shares is the next important stage in Catlin’s development. The Company has grown significantly and has established a strong base internationally on which to go forward. This IPO will give investors the opportunity to share in the exciting future of the Group.”
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 in 2003 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.
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 |
- The value of the Group is calculated using between 159.9 million and 158.1 million shares, being the fully diluted number of shares, calculated in accordance with US Generally Accepted Accounting Principles.
- Amounts in US dollars have been converted to pounds sterling using a rate of US$1.818 to £1, the rate as at 16 March 2004. These conversions are provided for editors’ convenience and should not be construed as a representation that the converted amounts actually represent such pounds sterling amounts or could be converted into pounds sterling at the rate indicated or any other rate.
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.