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2014-04-21

Endurance Specialty Holdings Ltd: Endurance Specialty Holdings Reiterates Strategic Logic and Significant Premium in Acquisition of Aspen Insurance

PEMBROKE, Bermuda, April 21, 2014 - Endurance Specialty Holdings Ltd. (NYSE:
ENH) today said that the vehement refusal of Aspen Insurance Holdings Limited
(NYSE: AHL) to consider its $3.2 billion proposal continues to deny its
shareholders the ability to receive a highly attractive premium and an
ongoing stake in a global industry leader.

Michael J. McGuire, Chief Financial Officer of Endurance, said: "Having
already rejected our proposal, Aspen's defensive statement simply repeats
inaccurate characterizations andignores the plain fact that we are offering
its shareholders significant value
for their shares and the opportunity to participate in a larger, superior
organization going forward. This is another clear sign of an entrenched
Board and management that is not aligned with shareholder interests.

"Endurance remains clearly intent on consummating a transaction and not, as
Aspen claims, just 'kicking the tires.' Aspen well knows that customary due
diligence is no roadblock and would not present any impediment to closing a
negotiated transaction. Moreover, the broad range of Aspen and Endurance
shareholders with whom we have been speaking agree with the strategic
rationale and financial benefits we outlined. This stands in stark
contradiction to Aspen's mischaracterization of market sentiment, which we
strongly question," Mr. McGuire added.

The company also noted the following:

* Highly attractive premium for an underperforming company - Aspen's "go it
alone" strategy is cold comfort to investors looking at receiving a
significant premium for their shares, given that Aspen has meaningfully
underperformed Endurance and its peers since 2009 in combined ratio, return
on equity, and growth in book value per share.
* Endurance alignment with shareholders - Aspen simply cannot assert
meaningful alignment of interests with shareholders given the paucity of
the board and management's ownership stake, both individually and
collectively. This contrasts dramatically with Chairman and CEO John
Charman's substantial ownership stake in Endurance as well as his
commitment to purchase $25 million of additional shares in connection with
the transaction. In fact, insider ownership of Endurance totals 4.7 percent
vs. 1.4 percent for Aspen, a sharp disparity.
* Financing strength and commitment - In addition to the significant
financial strength and liquidity of Endurance's balance sheet, it has
secured an equity commitment from industry-leading institutional investors
to fund part of the cash consideration of the transaction. The equity
commitment is a strong validation of Endurance and the strategic,
operational, and financial merits of the proposed transaction.
* Unparalleled Lloyd's expertise and insight - Mr. John Charman has 30 years
of experience in Lloyd's, including as founder of the first Lloyd's
syndicate backed by corporate capital and as Senior Deputy Chairman at the
Council of Lloyd's during its financial crisis. Try as Aspen may to distort
a year-old comment, the fact remains that he is and has always been a
strong supporter of a well capitalized, larger Lloyd's operation, which is
what the combined Endurance-Aspen platform would be.
* Cultural strength and compatibility -- The significant inflow of
world-class talent that Endurance has attracted in the past year from
across the industry is a strong testament to the winning culture it has
created. The combined company will have greater scale and market presence
that will create expanded opportunities. In the face of that, assertions
about cultural issues and dis-synergies impeding the operation of the
combined company are unfounded.

Mr. McGuire concluded: "We remain fully committed to delivering our highly
attractive premium to Aspen shareholders. To date, we have taken a
deliberate approach, allowing Aspen ample opportunity at each step to engage
with us for the benefit of their shareholders. We will continue to take the
steps necessary to make sure Aspen shareholders have the opportunity to
realize a significant premium for their shares, even in the face of the
misguided resistance of Aspen's board."

For additional information about Endurance's proposal to acquire Aspen,
including a slide presentation for investors, please
visitwww.endurance-aspen.comorir.endurance.bm.

About Endurance Specialty Holdings

Endurance Specialty Holdings Ltd. is a global specialty provider of property
and casualty insurance and reinsurance. Through its operating subsidiaries,
Endurance writes agriculture, professional lines, property, and casualty and
other specialty lines of insurance and catastrophe, property, casualty,
professional liability and other specialty lines of reinsurance. We maintain
excellent financial strength as evidenced by the ratings of A (Excellent)
from A.M. Best (XV size category) and A (Strong) from Standard and Poor's on
our principal operating subsidiaries. Endurance's headquarters are located
at Wellesley House, 90 Pitts Bay Road, Pembroke HM 08, Bermuda and its
mailing address is Endurance Specialty Holdings Ltd., Suite No. 784, No. 48
Par-la-Ville Road, Hamilton HM 11, Bermuda. For more information about
Endurance, please visitwww.endurance.bm.

Cautionary Note Regarding Forward-Looking Statements

Some of the statements in this press release may include forward-looking
statements which reflect our current views with respect to future events and
financial performance. Such statements may include forward-looking statements
both with respect to us in general and the insurance and reinsurance sectors
specifically, both as to underwriting and investment matters. These
statements may also include assumptions about our proposed acquisition of
Aspen (including its benefits, results, effects and timing). Statements
which include the words "should," "would," "expect," "intend," "plan,"
"believe," "project," "anticipate," "seek," "will," and similar statements of
a future or forward-looking nature identify forward-looking statements in
this press release for purposes of the U.S. federal securities laws or
otherwise. We intend these forward-looking statements to be covered by the
safe harbor provisions for forward-looking statements in the Private
Securities Litigation Reform Act of 1995.

All forward-looking statements address matters that involve risks and
uncertainties. Accordingly, there are or may be important factors that could
cause actual results to differ materially from those indicated in the
forward-looking statements. These factors include, but are not limited to,
the effects of competitors' pricing policies, greater frequency or severity
of claims and loss activity, changes in market conditions in the agriculture
insurance industry, termination of or changes in the terms of the U.S.
multiple peril crop insurance program, a decreased demand for property and
casualty insurance or reinsurance, changes in the availability, cost or
quality of reinsurance or retrocessional coverage, our inability to renew
business previously underwritten or acquired, our inability to maintain our
applicable financial strength ratings, our inability to effectively integrate
acquired operations, uncertainties in our reserving process, changes to our
tax status, changes in insurance regulations, reduced acceptance of our
existing or new products and services, a loss of business from and credit
risk related to our broker counterparties, assessments for high risk or
otherwise uninsured individuals, possible terrorism or the outbreak of war, a
loss of key personnel, political conditions, changes in accounting policies,
our investment performance, the valuation of our invested assets, a breach of
our investment guidelines, the unavailability of capital in the future,
developments in the world's financial and capital markets and our access to
such markets, government intervention in the insurance and reinsurance
industry, illiquidity in the credit markets, changes in general economic
conditions and other factors described in our Annual Report on Form 10-K for
the year ended December 31, 2013. Additional risks and uncertainties related
to the proposed transaction include, among others, uncertainty as to whether
Endurance will be able to enter into or consummate the transaction on the
terms set forth in the proposal, the risk that our or Aspen's shareholders do
not approve the transaction, potential adverse reactions or changes to
business relationships resulting from the announcement or completion of the
transaction, uncertainties as to the timing of the transaction, uncertainty
as to the actual premium of the Endurance share component of the proposal
that will be realized by Aspen shareholders in connection with the
transaction, competitive responses to the transaction, the risk that
regulatory or other approvals required for the transaction are not obtained
or are obtained subject to conditions that are not anticipated, the risk that
the conditions to the closing of the transaction are not satisfied, costs and
difficulties related to the integration of Aspen's businesses and operations
with Endurance's businesses and operations, the inability to obtain, or
delays in obtaining, cost savings and synergies from the transaction,
unexpected costs, charges or expenses resulting from the transaction,
litigation relating to the transaction, the inability to retain key
personnel, and any changes in general economic and/or industry specific
conditions.

Forward-looking statements speak only as of the date on which they are made,
and we undertake no obligation publicly to update or revise any
forward-looking statement, whether as a result of new information, future
developments or otherwise.

Regulation G Disclaimer

In this press release, Endurance has included certain non-GAAP measures.
Endurance management believes that these non-GAAP measures, which may be
defined differently by other companies, better explain the proposed
transaction in a manner that allows for a more complete understanding.
However, these measures should not be viewed as a substitute for those
determined in accordance with GAAP. For a complete description of non-GAAP
measures and reconciliations, please review the Investor Financial Supplement
on Endurance's website at www.endurance.bm.

Return on Equity (ROE) is comprised using the average common equity calculated
as the arithmetic average of the beginning and ending common equity balances
for stated periods.

Third Party-Sourced Information

Certain information included in this press release has been sourced from third
parties. Endurance does not make any representations regarding the accuracy,
completeness or timeliness of such third party information. Permission to
cite such information has neither been sought nor obtained.

All information in this press release regarding Asp...

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