Arch Capital Group Ltd. [NASDAQ: ACGL] today announced that private equity investment funds associated with Hellman & Friedman, principal investors in the Company, agreed to purchase from an existing shareholder an additional 1,131,065 convertible preference shares and 488,935 common shares of the Company. Following the purchase, which is expected to close on March 20, 2003, Hellman & Friedman investment funds will own approximately 20% of the Company's common shares on a fully-diluted basis (assuming the exercise of all outstanding preference shares, stock options and warrants).
Jack Bunce, a Managing Director of Hellman & Friedman, said, "We are very pleased to have the opportunity to increase our investment in Arch Capital. The Company has made tremendous progress in establishing itself as a significant provider of insurance and reinsurance, and market conditions continue to be extremely favorable."
About Arch Capital Group Ltd.
Arch Capital Group Ltd., a Bermuda-based company with over $1.4 billion in equity capital, provides insurance and reinsurance on a worldwide basis through its wholly owned subsidiaries.
About Hellman & Friedman LLC
Hellman & Friedman LLC is a San Francisco-based private equity investment firm. Since its founding in 1984, the firm has raised and managed more than $4.9 billion of committed capital and invested in over 40 companies. The firm's strategy is to invest in superior business franchises and to be a knowledgeable, value-added, and flexible investor in select industries such as financial services, media, professional services, information services and communications. Representative investments include Mid Ocean Reinsurance; The Nasdaq Stock Market, Inc.; Franklin Resources, Inc.; Young & Rubicam, Inc.; Formula One Holdings, Ltd.; Western Wireless Corporation (Nasdaq: WWCA); VoiceStream Wireless Corporation; Eller Media Company, Inc.; and others. For more information on Hellman & Friedman, visit www.hf.com.
Cautionary Note Regarding Forward-Looking Statements
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. This release or any other written or oral statements made by or on behalf of the Company may include forward-looking statements which reflect the Company's current views with respect to future events and financial performance. Forward-looking statements involve the Company's current assessment of risks and uncertainties, including statements regarding anticipated future financial results and prospects for the insurance and reinsurance markets generally. Actual events and results and prospects for the insurance and reinsurance markets may differ materially from those expressed or implied in these statements. In addition to risks and uncertainties related to the Company's business described in filings by the Company with the Securities and Exchange Commission, the items addressed in this release are subject to various risks and uncertainties including, but not limited to, the risks relating to the successful integration of new management personnel into the Company's existing structure and conditions in the insurance and reinsurance markets. The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with other cautionary statements that are included herein or elsewhere. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.