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Accredited Home Lenders Holding Co.
Mortgage Banking Company
Annuity and Life Re (Holdings), Ltd.
Life and Annuity Reinsurance Company
British Marine Holdings, Ltd.
Specialty Marine Insurance Underwriter
Brookdale Senior Living, Inc.
Senior Living Facility Owner/Operator
Catlin Group Limited
Specialty-lines Commercial Insurer/Reinsurer
Endurance Specialty Insurance, Ltd.
Commercial Property and Liability Insurer/Reinsurer
Kemper Corporation
Life Insurance Company
Lancashire Holdings Limited
Bermuda based Insurance and Reinsurance Company
NACOLAH Holding Corporation
Life Insurance Company
National Re Corporation
Property and Casualty Reinsurance Company
NewStar Financial, Inc.
Diversified Commercial Finance Company
Permanent General Company, Inc.
Non-Standard Automobile Insurance
Provident Companies, Inc. (now UnumProvident Corp.)
Disability and Life Insurance Company
PXRE Group, Ltd.
Property Catastrophe Reinsurer
SBJ Group Limited
Insurance Broking and Consulting
Tarquin, plc
Lloyd's Specialty Lines Underwriter and Managing Agency
Transport Holdings, Inc.
Supplemental Accident and Health Insurance Company
Unionamerica Insurance Company Limited
Property and Casualty Reinsurance Company
Universal American Financial Corporation
Senior Market Health Provider
UP&UP, Inc. and Health Extras, Inc.
Preferred Provider Organization
USI Holdings Corporation
Middle-Market Insurance Broker
Accredited Home Lenders Holding Co.
Mortgage Banking Compay
CZFS acquired its ownership interest in Accredited Home Lenders Holding Co. (NASDAQ:LEND) by an investment in a predecessor company, Aames Investment Corporation, in February 1999. Accredited and its subsidiaries operate as a mortgage banking company in the United States and Canada. The company originates, finances, securitizes, services and sells sub-prime mortgage loans secured by residential real estate. It originates loans through independent mortgage brokers and a direct sales force. Its wholesale channel originates sub-prime mortgage loans through relationships with small mortgage bankers, local banks and mortgage brokers. The company’s retail channel originates mortgage loans through branch and centralized retail locations.
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Annuity and Life Re (Holdings), Ltd.
Life and Annuity Reinsurance Company
In April 1998, IP participated in the formation of Annuity and Life Re, a newly formed, publicly traded Bermuda-domiciled life and annuity reinsurance company. The investment was concurrent with an initial public offering of the company. Annuity and Life Re was created to utilize its strong balance sheet and competitive pricing, resulting from its low cost structure and Bermuda domicile, to penetrate the large and rapidly growing life and annuity reinsurance markets.
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British Marine Holdings, Ltd.
Specialty Marine Insurance Underwriter
In conjunction with an equity infusion from CZFS in January 2000, British Marine converted from a mutual into a stock insurance company. Founded in 1876, British Marine is a London-based specialty marine insurer, which offers both protection and indemnity insurance and hull and machinery insurance to shipowners in over 90 countries. Operating outside of the International Group, a group of 14 mutual insurers who focus on insuring the potentially catastrophic losses of large vessels, British Marine takes a different approach to marine insurance. Unlike other marine insurers, the company diversifies across a large number of small vessels (gross tonnage of less than 10,000) that operate in specialized niche sectors of the shipping industry.
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Brookdale Senior Living, Inc.
Senior Living Facility Owner/Operator
CZFS initially invested in Brookdale (NYSE: BKD) in May 1999. Headquartered in Chicago, Brookdale operates facilities that provide both independent and assisted living services for upper-income seniors with low-acuity healthcare needs, who desire the highest quality of service and care. Over the intermediate and long term, demographic trends suggest that there will be a growing demand for these type of services. The company owns or manages over 50,000 senior housing units in the U.S.
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Catlin Group Limited
Specialty-lines Commercial Insurer/Reinsurer
In July 2002, CZFS led a $482 million investment in Catlin Group Limited (LSE: CGL), a Bermuda-based specialty lines commercial insurer and reinsurer. Catlin is a leading Lloyd's managing agency and syndicate which has been operating since 1986 and writes a book of property, liability, marine and energy risks on both a direct and reinsured basis. The global property and casualty business is experiencing significant rate increases across many lines of business due to capacity shortfalls in the industry caused by years of inadequate pricing, increased frequency and severity of catastrophe claims and lingering balance sheet issues. Catlin is well-positioned to benefit from the current cycle turn due to its strong management team, established franchise, large and profitable existing book of business and proven track record of disciplined underwriting. Catlin's Lloyd's franchise enables the Company to enjoy the unique benefits of the Lloyd's market, which include significant financial leverage, an extensive distribution network and unique global licenses.
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Endurance Specialty Insurance, Ltd.
Commercial Property and Liability Insurer/Reinsurer
CZFS partnered with Aon Corporation and Zurich Financial Services to sponsor the formation of Endurance (NYSE: ENH) in December 2001. Endurance is a start-up Bermuda-based insurance and reinsurance company that intends to capitalize on the underwriting opportunities in the commercial property and liability insurance and reinsurance markets globally. Increased demand in the market due to the growing frequency and severity of catastrophic claims, including the tragic events of 9/11, has resulted in reductions in capacity for many companies and rate increases across multiple lines of business.
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Kemper Corporation
Life Insurance Company
In a highly publicized battle, Kemper Corporation became the acquisition target of two large financial institutions, both of which ultimately failed in their attempts to purchase the company. IP, recognizing this timely opportunity to purchase the wounded but still valuable franchise of Kemper, approached Zurich Insurance to propose a joint bid for the company. The result was that in January 1996, IP, in partnership with Zurich Insurance, completed the purchase of Kemper, which, through its subsidiaries, Federal Kemper Life Assurance Company (FKLA), Kemper Investors Life Insurance Company (KILICO) and other subsidiaries, was a leading provider of life insurance and retirement savings products. FKLA was one of the industry's largest writers of term life insurance, selling primarily low-cost, high-face-amount term insurance along with universal life and fixed annuities. KILICO primarily sold variable and fixed annuities to individuals, as well as school districts and municipalities.
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Lancashire Holdings Limited
Bermuda based Insurance and Reinsurance Company
USP sponsored Lancashire, a start-up Bermuda-based insurance and reinsurance company, in December 2005. After numerous storms led to record losses in the insurance and reinsurance industry resulting in an overall reduction in market capacity, Lancashire was capitalized with over $1 billion in capital. Lancashire’s focus is on writing coverages in the retrocession, marine and energy and property markets. The company’s underlying objective is to take advantage of the favourable underwriting resulting from the market dislocation caused by historically large insured losses incurred during 2004 and 2005. Lancashire will conduct its operations and be managed and controlled from Bermuda. With a strong management team, Lancashire is well positioned to effectively compete with both incumbent players and other start-ups. Lancashire is listed on the London Stock Exchange Alternative Investment Market (“AIM”) exchange under the symbol (LRE).
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NACOLAH Holding Corporation
Life Insurance Company
In December 1993, III, in partnership with DLJ Merchant Banking, Inc. and Life Reassurance Corporation of America, completed the acquisition of NACOLAH, a Chicago-based life insurance company that offered a wide array of term life and mortality-based term and universal life insurance products. In March 1996, the company was purchased by Sammons Enterprises Inc., a privately held corporation that has been in the insurance business since 1938.
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National Re Corporation
Property and Casualty Reinsurance Company
In April 1990, III, in partnership with management and several other investors, acquired National Re from Lincoln National Corporation in the first highly leveraged acquisition of a property and casualty reinsurance company. National Re was one of the six major U.S. underwriters of property and casualty reinsurance. In February 1992, the company completed an initial public offering.
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NewStar Financial, Inc.
Diversified Commercial Finance Company
CZFS sponsored the formation of NewStar Financial, Inc. (NASDAQ: NEWS) in June 2004. Headquartered in Boston, MA, NewStar is a nationally-focused commercial finance company which provides flexible debt capital solutions to mid-sized corporations, real estate borrowers and issuers of asset backed securities. The Fund’s investment in NewStar was a result of its proactive efforts to develop a unique business strategy in the commercial finance sector, recruit an experienced and cohesive management team and raise $660 MM in equity and debt capital to finance the business. The result is the creation of a fully–integrated company that is positioned to become one of the leaders in the underserved commercial finance marketplace.
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Permanent General Company, Inc.
Non-Standard Automobile Insurance
CZFS purchased its ownership interest in December 2004. Permanent General Companies specializes in the sale and underwriting of automobile insurance and related products in the U.S. non-standard automobile market. Private passenger automobile insurance is comprised of several different risks categorized as preferred, standard and non-standard. The non-standard automobile insurance industry provides coverage for drivers who are unable to obtain insurance from standard carriers. Permanent General is headquartered in Nashville, TN, and has been doing business for over 35 years.
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Provident Companies, Inc. (now UnumProvident Corp.)
Disability and Life Insurance Company
In 1995, partially as a result of inquiries from IP, Textron, Inc. began to consider divesting its subsidiary, Paul Revere Corporation. Recognizing that Provident Companies, Inc. would be an ideal buyer for the company, given its in-depth knowledge of the disability income market, and the fact that the combination of two of the leading players in the market should result in significant cost-savings, IP approached Provident to suggest an acquisition of Paul Revere with IP's participation. In March 1997, IP completed an investment in Provident Companies, Inc., helping to finance its acquisition of Paul Revere. Provident was a publicly traded insurance holding company, which, through its subsidiaries, was the second largest writer of individual disability income insurance in the United States. Paul Revere Corporation was the largest writer of individual disability income insurance in the United States, and the merger of the two companies created a dominant player in this sector. Subsequent to IP's investment, Provident Companies merged with Unum Corporation, the largest writer of group disability insurance in the United States, creating UnumProvident Corp. which currently trades on the NYSE under the ticker UNM. UnumProvident is the largest provider of group and individual disability insurance in North America, the United Kingdom, and Japan. It also provides a complementary portfolio of life insurance products, including long-term care insurance, life insurance, employer- and employee-paid group benefits, and related services.
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PXRE Group, Ltd.
Property Catastrophe Reinsurer
In April 2002, CZFS acquired a large minority interest in PXRE (NASDAQ: PXT). Headquartered in Hamilton, Bermuda, PXRE was established in 1982 and has traded on the New York Stock Exchange since its IPO in 1987. For twenty years, PXRE has been providing reinsurance coverage.
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SBJ Group Limited
Insurance Broking and Consulting
CZFS completed its purchase of a majority interest in SBJ Group in December 2004. SBJ Group Limited is one of the top corporate insurance broker, administrator and employee benefits consults in the UK. SBJ Group sources its business primarily from mid-sized corporate clients and intermediaries. It has two principal businesses: Corporate, which comprises insurance, risk management, actuarial and employee benefit service; and International market brokering and administration services which handle specialist risks from corporations, partnerships, insurance and intermediaries. SBJ Group Limited is headquartered in London.
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Tarquin, plc
Lloyd's Specialty Lines Underwriter and Managing Agency
In December 1994, IP completed the purchase of Tarquin plc, the holding company for Charman Underwriting Agencies Limited ("CUAL"), a Lloyd's of London managing agency and the formation of a single dedicated "corporate" capital vehicle to support the underwriting activities at a newly formed corporate syndicate ("Syndicate 2488"). Through this transaction, IP developed and received approval from the regulators of Lloyds to create the first dedicated corporate capital vehicle at Lloyds, a structure that has become prevalent today, with corporate capital representing more than 80% of the total capital at Lloyds today. Through CUAL, Tarquin's main activity was to perform the underwriting, claims, accounting and capital-raising functions for Marine Syndicates 488 and 2488, which underwrote energy, hull, marine war, aviation war, pollution liability, aviation, political risks, and other specialty marine and non-marine insurance coverages.
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Transport Holdings, Inc.
Supplemental Accident and Health Insurance Company
In September 1995, IP completed the tax-free "sponsored" spin-off of Transport Holdings, Inc. from its parent, Travelers Group. After preliminary negotiations, Travelers decided that an outright sale of the subsidiary did not accomplish its objectives and therefore pulled the company off the market. IP devised the sponsored spin-off structure, the first of its kind within the insurance sector, in an effort to respond to the needs of the seller, while at the same time maintaining an attractive risk-return profile for its investors. Headquartered in Fort Worth, Texas, Transport, through its wholly owned subsidiary, Transport Life Insurance Co., was a leading writer of specialty supplemental health insurance products, primarily cancer, heart/stroke, and long-term care products.
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Unionamerica Insurance Company Limited
Property and Casualty Reinsurance Company
In September 1993, III purchased Unionamerica Insurance Company Limited ("UA") from Continental Corp. UA, headquartered in London, was a leading reinsurance company of United States-based property and casualty risks. UA's core business was its casualty treaty book, which comprised over 70% of its total gross written premiums. Within the casualty treaty book, UA focused on professional indemnity, including medical malpractice and similar lines for lawyers, architects, engineers and accountants. In December 1995, UA completed a $65 million initial public offering. Subsequently, in December 1997, MMI Companies, Inc., a publicly traded Chicago-based insurance company, completed an exchange offer for all the outstanding stock of UA.
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Universal American Financial Corporation
Senior Market Health Provider
CZFS invested in Universal American (NASDAQ: UHCO) in July 1999 in conjunction with the company's acquisition of the Career Sales Division from PennCorp Financial Group. Universal markets a broad array of health insurance and managed care products and services to the growing senior population. Its principal products for the senior market are Medicare Part D, Medicare Supplement and Medicare Advantage. These products are distributed through a career agency system and an independent general agency system. The company also provides administrative services for senior market insurance and non-insurance programs to both affiliated and unaffiliated insurance companies.
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UP&UP, Inc. and Health Extras, Inc.
Preferred Provider Organization
CZFS purchased its ownership interest in UP&UP in February 1999. UP&UP was founded in 1995 and managed one of the largest national preferred provider organizations in the United States. Its network comprised over 2,900 hospitals and nearly 170,000 medical providers, including physicians and other specialty groups. In conjunction with the investment in UP&UP, CZFS co-invested in an affiliated company called HeatlhExtras. HealthExtras markets supplemental health and catastrophic disability insurance directly to consumers.
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USI Holdings Corporation
Middle-Market Insurance Broker
CZFS led a recapitalization of USI (NASDAQ: USIH) in 1999 and since that time has been the Company's largest shareholder. In October 2002, USI completed its initial public offering. Founded in 1994, USI is a leading provider of employee health and welfare products and related consulting and administration services. USI's sales and marketing efforts are primarily focused on the 1.1 million middle-market businesses in the United States, which have traditionally purchased their insurance and financial products and services from a fragmented group of providers. Through strategic marketing relationships with a number of leading insurance and financial services companies, including Ceridian, Chubb, Sovereign Bancorp, UnumProvident and Zurich Financial Services, USI is able to offer a local presence with the full array of products and services typically only offered by national and global brokers.
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