Investor Group Led by Lightyear Capital Completes Purchase of Sirius America
08.03.2006
NEW YORK, NY (August 3, 2006) – Lightyear Capital LLC ("Lightyear"), a private equity firm focused on financial services, announced today that it has closed the acquisition of program specialty insurance provider Sirius America Insurance Company ("Sirius" or the "Company") from White Mountains Insurance Group (NYSE: WTM) ("White Mountains"). Lightyear led an investment team composed of Lehman Brothers Merchant Banking and AlpInvest Partners. White Mountains will remain a significant investor in the Company.
Donald B. Marron, Chairman and Chief Executive Officer of Lightyear, commented, "Our investment in Sirius represents an opportunity to expand a proven business model. The large and growing program specialty insurance market, approximately $30-35 billion, remains an underserved market with no pure-play program specialty insurance provider. We hope to grow and build Sirius into the industry leader."
As part of the transaction, which was announced on April 12, 2006, White Mountains' Chief Executive Officer, Steven Fass, has joined the Company's Board of Directors. In addition, industry veterans Detlef Steiner and Mary Sbaschnig will join the Company. Steiner will become Chairman of the Board of Directors and will oversee the execution of the Company's strategic and business development plan. Sbaschnig will join the Company as a senior executive with responsibilities over administration and information technology.
David W. Glenn, Managing Director of Lightyear, added, "Sirius is well positioned to become the player of choice in the marketplace by capitalizing upon favorable conditions within the program insurance market that include growing market acceptance and limited supply."
Program specialty insurance carriers work closely with managing general agents and agents to underwrite specialty classes of primary insurance risk on behalf of insured corporations, individuals and properties. The Company offers its products through a network of valued agent partners by providing them with best-in-breed technology and training to simplify the pricing, execution and submission of insurance policies in accordance with government regulations, and to allow for superior data collection and integrity needed for underwriting and monitoring such policies. The Company encourages long-term, stable relationships with high quality agent partners and is committed to providing them unparalleled standards of customer service.
ABOUT LIGHTYEAR CAPITAL
Lightyear is a private equity investment firm providing buyout and growth capital to companies in the financial services industry. Based in New York, Lightyear, through its affiliated funds, has managed approximately $3 billion of committed capital with investments across the financial services spectrum, including asset management, banking, brokerage, financial technology, insurance, leasing and related business services, and other sectors within financial services. Lightyear brings unique strengths and discipline to its investment process, as well as operating, transaction, and strategic management experience, along with significant contacts and resources beyond capital. The senior team of professionals has an average of 20 years of financial services-related experience and includes David Glenn, Stewart Gross, Donald Marron, Richard Sterne, and Mark Vassallo.
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ABOUT LEHMAN BROTHERS MERCHANT BANKING
Lehman Brothers Merchant Banking, part of the Private Equity business of Lehman Brothers (NYSE:LEH), the global investment bank, manages funds that seek significant long-term capital appreciation through direct investments in established operating companies in partnership with management. The group invests in companies with sound business fundamentals, proven operating teams and a compelling business strategy or vision. Lehman Brothers Merchant Banking Partners III L.P. is the Merchant Banking group's current fund. The fund closed successfully in July 2005 with over $1.2 billion of capital commitments from institutions, high net worth individual investors and Lehman Brothers, its affiliates and employees. The group is part of Lehman Brothers Private Equity, which has more than $10 billion of assets under management.