Ironshore to Buy Lloyd’s Pembroke; Best Sees No Rating Change

July 1, 2008

Ironshore Inc. announced from Bermuda that it has signed a sale and purchase agreement with Chaucer Holdings PLC and the management of Pembroke for the £17 million ($34 million) cash purchase of Pembroke Managing Agency Limited, which manages Lloyd’s Syndicate 4000.

The transaction is subject to approval from Lloyd’s and the UK’s Financial Services Authority (FSA).

Ironshore said: “Mark Wheeler serves as Active Underwriter for the Syndicate. Pembroke Managing Agency is led by Mark Butterworth, Managing Director, and Mark Wheeler, Underwriting Director. The Syndicate underwrites a portfolio of specialist lines products including Financial Institutions, Professional Liability, Marine and other Select Specialist lines. Ironshore will take over the 2009 underwriting year of account onwards and Chaucer will retain the 2008 and prior underwriting years of account.”

A.M. Best Co. commented that its ratings of the Cayman Islands-based broker and its operating subsidiaries are unchanged following the acquisition announcement. Best noted that Ironshore’s operating subsidiaries include: Ironshore Insurance Ltd. (Bermuda), Ironshore Reinsurance Ltd. (Bermuda), Ironshore Indemnity Inc. (Minneapolis, MN) and Ironshore Specialty Insurance Company (Phoenix, AZ).

Ironshore’s CEO Bob Deutsch said the Company is “very excited about the acquisition of Pembroke and Ironshore’s entry into the Lloyd’s marketplace. We will work closely with Lloyd’s and the FSA to gain regulatory approval,” he added.

Deutsche also noted that acquiring Pembroke completes Ironshore’s “strategic goal to have three central underwriting platforms: Bermuda, US and Lloyd’s. Pembroke offers Ironshore a diverse spread of international financial institutions and professional liability risks, as well as an ideal Lloyd’s platform poised for future growth focused on underwriting profits.”

Wheeler called the tie-up with Ironshore “an excellent fit,” indicating that “our business is complementary and our underwriting approach like minded. We are excited about this opportunity to join forces and further develop our existing business, whilst expanding into targeted lines of business where additional expertise is brought to bear. This natural evolution will enable us to enhance our offering to clients, and we believe provides the right platform to grow the business successfully.”

Source: Ironshore – www.ironshore.com and A.M. Best – www.ambest.com

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