Converium Holding AG Launches IPO
London
Converium Holding AG last week launched its initial public offering for up to 100 percent of the company.
Converium, which was established on Oct. 1, comprises the third-party reinsurance activities of Zurich Financial Services, formerly managed under the brand name of Zurich Re.
In the IPO, 35 million shares are being offered by Zurich Financial Services in the form of shares in Switzerland and shares or American Depository Shares in the United States. Converium said there 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 1.6552 Swiss francs per $1.00.
Zurich Financial Services has granted an overallotment option of up to an additional five million shares, said Converium in a statement, adding that if the overallotment option is exercised in full, ZFS will not own any Converium shares.
In a statement to announce the IPO, Converium said that ZFS has agreed to cap Converiums net exposure for losses arising out of the Sept. 11 terrorist attacks at $289 million, which is the amount of losses and loss adjustment expense recorded by Converium as of Sept. 30.
The company also announced the appointment of an independent board of directors, with Peter C. Colombo named as chairman. Mr. Colombo has served as deputy chairman of the board of directors of Generali (Schweiz) Holding AG and vice president of the board of directors of Compa?ia Europea de Seguros, Madrid, Spain, from 1998. From 1987 to 1998, he served as president and CEO of Union Reinsurance Company.
Georg Mehl, who since last year has served as consultant for the W?stenrot & W?rttembergische Group in Stuttgart, Germany, was named non-executive vice-chairman.
The non-executive board of directors members are:
J?rgen F?rterer, who has served as chairman of the executive management board of R+V Versicherung AG, the holding company of R+V Versicherungsgruppe, since 1997.
Derrell J. Hendrix, who is manager and chief executive officer of The RISConsulting Group LLC in Boston.
George G.C. Parker, who is a Dean Witter Distinguished Professor of Finance and Management at the Graduate School of Business at Stanford University.
Reproduced from National Underwriter Property & Casualty/Risk & Benefits Management Edition, November 26, 2001. Copyright 2001 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.
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