Kester Capital

Ironshore Inc. Created as New Global Cat Insurance Facility With Over $1 Billion in Capital

03 January 2007

(INVESTMENT CLOSED IN 2006)

HAMILTON, BERMUDA, January 3 – 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.”

Ironshore Founding Investors

BSMB, the private equity affiliate of The Bear Stearns Companies Inc. (NYSE: BSC), invests private equity capital in compelling leveraged buyouts, recapitalizations and growth capital opportunities alongside superior management teams. BSMB focuses on investments principally in middle-market retail, financial services and consumer products companies. Since its formation in 1997, BSMB has been an investor in over 50 portfolio companies. BSMB manages nearly $5 billion of private equity capital, including its new $2.7 billion institutional fund and capital dedicated to its affiliate, Bear Growth Capital Partners. More information about BSMB can be found at www.bsmb.com.

Corporate Partners II is a private equity fund targeting significant minority-stake investments in established public and private companies. Corporate Partners invests in solutions by providing equity and equity-related capital to support companies where there is a value-added use of proceeds such as a strategic acquisition, the pursuit of a growth initiative, strengthening the balance sheet, increasing shareholder stability and other important corporate needs. Corporate Partners is a business unit of Lazard Alternative Investments, a merchant banking firm that manages over $2 billion. For more information on Corporate Partners, go to www.corporatepartnersllc.com.

Fremont Partners, founded in 1991, is a private investment partnership that has managed more than $2 billion of equity investments in 22 companies, representing a total transaction value of $5.6 billion. With offices in San Francisco and Boston, Fremont invests across a diverse range of industries, including financial services, business services, food and consumer products, healthcare, building products, and industrial manufacturing. Fremont Partners makes substantial equity investments in operating companies, typically with enterprise values up to $1 billion, and seeks to build long term sustainable value by working with management teams to implement strategic and operating initiatives. Its website may be found at www.fremontpartners.com.

TowerBrook Capital Partners, L.P. is a private equity firm with more than $2.5 billion under management. The firm has offices in London and New York and focuses on making investments in European and North American companies. TowerBrook pursues private equity investments in large and middle market companies, partnering with highly capable management teams. www.towerbrook.com

Greenhill Capital manages several private equity funds with an aggregate of $1.3 billion in committed capital, focusing on the financial services, energy and telecommunications industries. Its publicly traded portfolio companies include: Global Signal Inc., Heartland Payment Systems, Inc. and Hercules Offshore, Inc. Greenhill Capital is an affiliate of Greenhill & Co., Inc. (NYSE: GHL), an independent global investment banking firm with offices in New York, London, Frankfurt, Toronto and Dallas. For more information about Greenhill Capital, please visit http://www.greenhillcapitalpartners.com.

Tara Investment Partners LLC and its affiliated funds were formed by Robert Clements and John Clements to partner with leading management teams and sophisticated investors in making private equity investment in the insurance industry.

Integro, through its subsidiaries, is an insurance brokerage and risk management firm dedicated to serving clients with large and/or complex risks. Integro has offices in New York, San Francisco, Chicago, Atlanta, Bermuda, Toronto, Montreal, London and Stockholm. Its headquarter office is located at 3 Times Square, 9th Floor, New York, New York, 10036. 1-877-688-8701. More information about Integro is available at www.integrogroup.com.

Ironshore Insurance Ltd. will be located at Swan Building, 3rd Floor, 26 Victoria Street, Hamilton HM 12, Bermuda, 441-279-8200.

The securities have not been registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States unless registered under the Securities Act or under an applicable exemption from such registration requirements. This release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.