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Ironshore Inc. Created As New Global Cat Insurance Facility with over $1 Billion in Capital

January 3, 2007

Ironshore Inc. announced today that it has raised more than $1 billion through a private placement of its equity securities, and it will begin underwriting specialty lines of insurance immediately through its Bermuda-based insurance subsidiary, Ironshore Insurance Ltd. This newly formed global insurance company was created in response to the crisis conditions in the U.S. property catastrophe insurance markets, a result of unprecedented hurricane activity in recent years and subsequent changes in the insurance industry that make such coverage capital intensive and much more costly.

Initially, Ironshore will write a worldwide book of property business. Because of marketplace demands, the company’s initial focus will be on commercial risks with wind exposures in the catastrophe-prone coastal states such as Alabama, Florida, Georgia, Louisiana, Mississippi, North Carolina, South Carolina and Texas, as well as the Caribbean and Yucatan Peninsula. Ironshore will also provide commercial earthquake coverage in California.

Ironshore management and staff will be based in Bermuda, led by Robert V. Deutsch as Chief Executive Officer and Leslie J. Rock as President and Chief Underwriting Officer. Mr. Deutsch is a highly regarded executive who has worked in the insurance industry for 25 years, having served in leading roles with two major insurance companies. Mr. Rock has long been recognized as the leading property underwriter at Lloyd’s, having served as chief property underwriter for three of its leading property syndicates over the past 25 years. Ironshore’s leadership team also includes Mitchell E. Blaser, most recently the CFO of Swiss Re America and Marsh Inc, who has been appointed Chief Financial Officer.

“In the wake of Hurricane Katrina and other notable catastrophic events over the past two years, tens of billions of dollars have flowed into the reinsurance sector, but to date, permanent, adequate capacity has not been established on the insurance side,” stated Deutsch. “Ironshore is very pleased to be able to provide significant new insurance capacity with a substantial, unencumbered capital base and a proven, strong management team.”

The founders of Ironshore are Robert Clements and John Clements through their investment vehicle, Tara Partners Fund LLC, and Ironshore management. The company’s founding investors are Bear Stearns Merchant Banking, Corporate Partners (a business unit of Lazard Alternative Investments), Fremont Partners, TowerBrook Capital Partners and Greenhill Capital Partners. Integro Ltd., a leading global insurance broker that focuses primarily on buyers of insurance with large and/or complex risks, is a sponsor of Ironshore.

Robert Clements is recognized for his industry leadership in creating insurance solutions in response to insurance market dislocations over the past 20 years, having founded a number of Bermuda domiciled insurance and reinsurance companies, including ACE Limited, XL Capital Ltd., Mid Ocean Ltd and, most recently, Arch Capital Group Ltd. Robert Clements said, “Integro initiated the idea of Ironshore as an independent, open-market facility available to all brokers, which we know from experience works best for all concerned.”