Montpelier Re Completes U.S. Surplus Lines Acquisition

November 6, 2007

Bermuda-based Montpelier Re Holdings Ltd. announced that Montpelier US, its Hartford-based subsidiary, has completed the purchase of a US Excess & Surplus lines insurance company after receiving regulatory approval from the Oklahoma Department of Insurance.

“The agreement, which was first announced in July, saw Montpelier US pay Gainsco, Inc., a Texas Corporation, a $4.75 million premium over book value to acquire General Agents Insurance Company of America, Inc.,” said the bulletin. “General Agents Insurance Company is a licensed admitted insurer in the State of Oklahoma and is authorized as an excess and surplus lines insurer in 37 states (38 states total).”

The company will be renamed Montpelier US Insurance Company (MUSIC) with underwriting operations based in Scottsdale, Arizona. It will write primarily excess and surplus line insurance in the continental US.

MUSIC’s new president, Dick Nenaber, noted that the Company is “assembling an experienced team and we look forward to serving the needs of our insurance partners within the next few weeks.”

Stan Kott, CEO of Montpelier US, commented: “With the acquisition of MUSIC we have quickly completed the initial infrastructure of Montpelier’s US operations. We are now able to offer our underwriting capabilities through our Lloyd’s syndicate and our own US capital based insurance company. The teams we are assembling now have the essential ingredients to build out our US enterprise.”

Chairman and CEO Anthony Taylor lauded the Group’s rapid progress in expanding “from Bermuda to Lloyd’s and to the US and Europe. The acquisition of MUSIC adds to our US capabilities and prepares us for a more diversified business,” he added.

Source: Montpelier Re – www.montpelierre.bm.

Topics Mergers & Acquisitions Carriers USA Excess Surplus

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