Converium Holding Ltd, Converium Ltd and Converium Finance S.A. announced that they have jointly filed an amended registration statement with the U.S. Securities and Exchange Commission covering the sale of up to $201.25 million worth of Guaranteed Subordinated Notes due in 2032 ,to be issued through Converium’s finance company affiliate Converium Finance S.A.
Converium Holding Ltd and Converium Ltd, jointly and severally, will guarantee, on a subordinated basis, payments on the Notes. The Offering is expected to be marketed and completed during the week of December 16, 2002.
For once the capital increase isn’t being made to increase loss reserves. Converium anticipates that it will need the extra funds to meet the growing demands for its non-life reinsurance products, especially in the U.S. market. The move marks a sharp turn around for Converium after the announcement last October that it would increase loss reserves.
CEO Dirk Lohmann, speaking on the first anniversary of the company’s share listing following its spin-off from Zurich Financial Services, indicated that Converium expected to exceed analyst’s profit forecasts of $80 million in 2002.
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