Endurance Specialty Holdings to Acquire Montpelier Re Holdings - Seite 2

The acquisition price of $40.24 per Montpelier common share, based on Endurance's closing price on March 30, 2015, represents a 19% premium to Montpelier's unaffected closing price per common share as of the close of business on December 10, 2014.  The acquisition price also represents a multiple of 1.21x Montpelier's fully converted book value per common share as of December 31, 2014.

Christopher Harris, Montpelier's President and Chief Executive Officer, said, "This transaction with Endurance provides significant value for Montpelier shareholders through up-front cash and an equity interest in a combined Endurance with enhanced scale, greater market presence and substantial product and geographic diversity.  The combination of our balance sheets, our diverse underwriting platforms and high-quality books of business is a compelling opportunity for our shareholders, customers and distribution partners."

For the twelve months ended December 31, 2014, the two companies had pro forma gross premiums written of $3.6 billion.  Endurance common shareholders' equity will increase from $2.8 billion to $4.1 billion, total capital will increase from $3.7 billion to $5.5 billion, and total cash and invested assets will increase from $6.7 billion to $9.3 billion on a pro-forma basis.  Endurance expects to achieve more than $60 million of annual run-rate cost savings and to realize meaningful capital efficiencies from the acquisition.  The transaction is expected to be immediately accretive to earnings per share and return on equity, excluding non-recurring integration and transaction costs.

Endurance's Board of Directors will be expanded at closing to include three of Montpelier's current directors.  Endurance's senior management team will lead the combined company from its Bermuda headquarters.

The agreement has been unanimously approved by both companies' Boards of Directors.  The transaction is expected to be completed in the third quarter of 2015 and is subject to the approval of both companies' shareholders, regulatory approvals and the satisfaction of customary closing conditions.  Funds affiliated with Charlesbank Capital Partners have agreed to vote their Montpelier common share stake in favor of the proposed transaction.