| IPO Company Profile |
| SEC Filings | Peer IPO Companies |
| Crum & Forster Holdings, Inc. |
| 305 Madison Avenue, Morristown, NJ 07960 * (973) 490-6600 |
| The company is a national commercial lines property and casualty insurance group that operates on a regional basis and underwrites business produced by a limited number of preferred independent agents and brokers. |
| Manager | Tier | Phone |
| Morgan Stanley Dean Witter Discover & Co. | Lead Manager | (212) 761-5900 |
| CIBC Oppenheimer & Company | Co-manager | (212) 667-7400 |
| Goldman, Sachs & Co. | Co-manager | (212) 902-5959 |
| Salomon Smith Barney | Co-manager | (212) 723-7300 |
| Employees: | 1658 | Financial: | SIC 6411 | |
| Type of Shares: | Common Shares | Filing Date: | 2/9/98 | |
| U.S. Shares Filed: | 0 | Filing Price: | - | |
| Non-U.S. Shares Filed: | 0 | Offering Amount: | $85,000,000 | |
| Primary Shares: | 0 | Expenses: | $0 | |
| Secondary Shares: | 0 | Post-IPO Shares: |
| Issuer's Law Firm: | Shearman & Sterling |
| Bank's Law Firm: | Lebdeuf, Lamb, Greene & Macrae |
| Auditor: | KPMG Peat Marwick |
Dollar amounts in U.S. millions except for per share data | |||||
| 9 Month Ending Financials | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Audited Income | Balance Sheet | ||
| 12/31/96 | 9/30/97 | 9/30/96 | 9/30/97 | ||
| Revenue: | $1,142.00 | $861.00 | $859.00 | Assets: | $5,381.00 |
| Net Income: | -$244.00 | $24.00 | -$95.00 | Curr Assets: | |
| EPS: | Liabilities: | $4,321.00 | |||
| Prior EPS: | Curr Liab: | ||||
| Cash Flow/Oper: | $116.00 | Equity: | $1,060.00 | ||
| Cash Flow/Fin: | $38.00 | Cash: | $3,037.00 | ||
| Cash Flow/Inv: | -$156.00 | ||||
| Competition |
| The commercial lines property and casualty insurance industry is highly competitive, and the Company believes that it will remain so for the foreseeable future. CFI faces competition from domestic and foreign insurers, many of which are larger and have greater financial, marketing and management resources than CFI. Competition in the commercial lines property and casualty insurance industry is based on many factors, including overall financial strength of the insurer, ratings by rating agencies, price, policy terms and conditions, services offered, reputation, agent and broker compensation and experience. The existing levels of competitive pressure and excess industry capacity have lasted longer and have been more severe than the Company had anticipated. The Company's challenge is to retain business and attract new business on terms offering acceptable return potential in an environment where both established competitors and newer entrants aggressively compete for premiums. There can be no assurance that CFI will not face increased competition in the future from other insurance companies, and that such increased competition, should it occur, will not have a material adverse effect on CFI. Several commercial property and casualty insurers and industry groups and associations currently offer alternative forms of risk protection in addition to traditional insurance products. These products, including large deductible programs and various forms of self-insurance that utilize captive insurance companies and risk retention groups, have been instituted to allow for better control of risk management and costs. It is not possible to predict how continued growth in alternative forms of risk protection will affect CFI's future operations. |
| Business Plan |
| CFI's objective is to enhance shareholder value by leveraging its Custom Agent relationships through its regional operating structure. Critical elements of the Company's strategy include: (i) enhancing its strong relationships with Custom Agents; (ii) operating through a decentralized regional structure; (iii) applying a generalist approach to the commercial lines middle market; (iv) maintaining attractive loss exposure through disciplined underwriting and superior claims management; (v) leveraging its Custom Agent relationships to take advantage of growth opportunities; (vi) reducing operating expenses; (vii) maintaining the Company's strong balance sheet and strong ratings; and (viii) repositioning the Company's investment portfolio to enhance investment income. |
| Use of Proceeds |
| The proceeds from the proposed offering will be distributed to selling shareholders. |