Specialty Insurer Ironshore Raises $300 Million for Expansion

June 23, 2009

Ironshore Inc. reported it has raised equity financing of up to $300 million to support the continued expansion of its specialty insurance business.

In connection with this financing, Ironshore said it has entered into an agreement with the private equity investment firm GTCR Golder Rauner LLC. GTCR has committed to purchase $200 million of newly issued equity of Ironshore, with up to $100 million of equity expected to be purchased by certain existing shareholders of Ironshore through the exercise of preemptive rights.

“We have tremendous momentum in the market and this additional capital will allow us to continue to expand our position with our clients. We see significant dislocations in selected segments of the market which will enable us to quickly and profitably deploy the capital,” said Kevin Kelley, CEO of Ironshore, who formerly headed Lexington Insurance, the surplus lines unit of American International Group. Kelley left Lexington last December to join Ironshore.

The transaction is subject to regulatory approvals and customary closing conditions.

Through its platform in Bermuda, including Iron-Starr Excess, Ironshore writes property and excess casualty insurance for commercial risks. Ironshore’s U.S. operations write commercial property and casualty insurance, including a variety of coverages in the Management & Professional Liability, Healthcare Liability, Construction and Environmental specialty areas.

Source: www.ironshore.com

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