Catlin Westgen Group Limited (CWGL) announced today it is to raise $532m (£349m) of new capital.
The transaction will enable CWGL to increase its underwriting capacity at Lloyd's through Syndicate 2003. It will also allow the company to commence underwriting through its Bermudan insurance company, Catlin Insurance Company Limited.
The company says this will provide it with additional underwriting flexibility and permit the development of innovative products to meet emerging client needs.
The transaction consists of the subscription for $482m of new equity capital and the provision of a $50m term loan facility.
The equity capital, in the form of convertible preferred stock, is being provided by a consortium of private equity investors led by Capital Z Financial Services Fund II, LP, J.P. Morgan Corsair II Capital Partners and The Cypress Group LLC. The term loan facility is being provided by JPMorgan Chase Bank.
Chief executive Stephen Catlin said: "This capital raising gives CWGL the capital strength to meet the growing needs of our worldwide client base and to capitalise on the many opportunities we see in the market today. I am excited about the prospects it offers for our clients, staff and shareholders and look forward to building on the Company's 18-year track record of success."
