Converium Receives O.K. for U.K. Insurer; DB and Putnam Up Stakes

June 4, 2003

Swiss-based Converium Holdings announced that the U.K.’s Financial Services Authority (FSA) has granted the company’s request to conduct a general liability insurance business. It also announced, in accordance with Swiss law, that Germany’s Deutsche Bank (DB) now holds approximately 7.96 percent of its outstanding shares and that Putnam, the Boston Mass.-based fund manager holds around 5.032 percent.

Converium’s new British subsidiary, Converium Insurance (UK) Ltd., “has been established for the purpose of supporting and strengthening Converium Group’s joint ventures and strategic business relationships, and will not operate as a general insurer,” said the bulletin. It has an initial capitalization of £50 million ($82 million).

Dirk Lohmann, Group CEO Converium, stated: “Our core business is and remains reinsurance. Converium Insurance (UK) Ltd will allow us greater control over our destiny in conjunction with our existing joint ventures and strategic business relationships (e.g. The Medical Defence Union Ltd, London) where Converium requires direct insurance issuing capability.”

Swiss law requires that any individual or related group shareholdings in Swiss public companies, exceeding five percent of outstanding shares, be publicly disclosed. In accordance with this stricture Converium announced that DB now holds “3,184,805 registered shares with 3,184,805 votes in Converium Holding Ltd, Zug for itself and its subsidiaries.” While none of the holdings exceeds the five percent limit they are part of the group’s overall holdings and “this corresponds to 7.96% of Converium’s registered share capital.”

Converium’s announcement also indicated that “Putnam Investment Management, LLC, and The Putnam Advisory Company, LLC (together “Putnam”), one Post Office Square, Boston MA 02109, has increased its share holding from previously 1,971,410 to 2,009,327 registered shares in Converium Holding Ltd, Zug. This corresponds to an increase from 4.982% to 5.032% of Converium’s registered share capital.”

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