|
Gulf Insurance Group Increases Its Capital Base
Hartford, CT (May 20, 2002) - Gulf Insurance Group announced today that a private equity fund, Trident II, L.P., will invest $125 million in the company in exchange for convertible preferred stock and notes. Trident is a private equity fund, managed by MMC Capital, which specializes in making investments in the insurance, reinsurance and financial services sectors.
"Gulf has an excellent position in the specialty market," said Christopher Watson, President and Chief Executive Officer of Gulf. "The addition to our capital base will allow us to expand our underwriting and marketing efforts at a time when the market for specialty lines presents significant opportunities."
Charles A. Davis, President and CEO of MMC Capital, said, "We are delighted that Trident, through this investment in Gulf, will have the opportunity to support Gulf in their efforts to further strengthen the company's position as a premier specialty insurer. The Gulf management team, led by Chris Watson, has an excellent track record and reputation in the industry. We believe that Gulf is well positioned to take advantage of favorable market conditions."
Gulf Insurance Group, a wholly owned subsidiary of Travelers Property Casualty (NYSE:TAP.A), is one of the leading players in the specialty lines market, providing a broad range of specialty business insurance coverage including management and professional liability, environmental and excess and surplus lines risks, umbrella, and fidelity and surety programs. Gulf also provides insurance products designed for financial institutions, the entertainment industry and sports organizations.
The transaction is subject to certain regulatory approvals and is expected to close during the third quarter.
|
