WHITE MTNS. ESTABLISHES REINSURER

Bermuda-based White Mountains Insurance Group joined the race for new reinsurance capacity with the announcement that it would establish a new reinsurer with an initial capital of $1 billion. The company said it was responding to the “current favorable underwriting and pricing environment in the insurance and reinsurance industry.” It will invest $200 million in the as yet unnamed venture and expects to raise the remaining capital from investors. Banc of America Securities LLC and reinsurance broker Benfield Group PLC are acting as financial advisors to the Company. Jack Byrne, who currently heads White Mountains’ subsidiary OneBeacon Insurance Group, will become the Chairman, and Anthony Taylor, who resigned his post as Deputy Chairman of Lloyd’s Insurer Wellington Holdings, will take over as CEO and chief underwriting officer effective Jan. 1, 2002.