Converium Holding AG Launches IPO

London

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Converium Holding AG last week launched its initial publicoffering for up to 100 percent of the company.

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Converium, which was established on Oct. 1, comprises thethird-party reinsurance activities of Zurich Financial Services,formerly managed under the brand name of Zurich Re.

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In the IPO, 35 million shares are being offered by ZurichFinancial Services in the form of shares in Switzerland and sharesor American Depository Shares in the United States. Converium saidthere is a price range of 72-90 Swiss francs per registered share,and $21.75 to $27.19 per ADS, based on an exchange rate of 1.6552Swiss francs per $1.00.

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Zurich Financial Services has granted an overallotment option ofup to an additional five million shares, said Converium in astatement, adding that if the overallotment option is exercised infull, ZFS will not own any Converium shares.

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In a statement to announce the IPO, Converium said that ZFS hasagreed to cap Converiums net exposure for losses arising out of theSept. 11 terrorist attacks at $289 million, which is the amount oflosses and loss adjustment expense recorded by Converium as ofSept. 30.

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The company also announced the appointment of an independentboard of directors, with Peter C. Colombo named as chairman. Mr.Colombo has served as deputy chairman of the board of directors ofGenerali (Schweiz) Holding AG and vice president of the board ofdirectors of Compa?ia Europea de Seguros, Madrid, Spain, from 1998.From 1987 to 1998, he served as president and CEO of UnionReinsurance Company.

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Georg Mehl, who since last year has served as consultant for theW?stenrot & W?rttembergische Group in Stuttgart, Germany, wasnamed non-executive vice-chairman.

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The non-executive board of directors members are:

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J?rgen F?rterer, who has served as chairman of the executivemanagement board of R+V Versicherung AG, the holding company of R+VVersicherungsgruppe, since 1997.

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Derrell J. Hendrix, who is manager and chief executive officerof The RISConsulting Group LLC in Boston.

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George G.C. Parker, who is a Dean Witter Distinguished Professorof Finance and Management at the Graduate School of Business atStanford University.


Reproduced from National Underwriter Property &Casualty/Risk & Benefits Management Edition, November 26, 2001.Copyright 2001 by The National Underwriter Company in the serialpublication. All rights reserved.Copyright in this article as anindependent work may be held by the author.


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