SOURCE: U.S. RE Securities

U.S. RE Securities

February 15, 2011 09:00 ET

U.S. RE Arranges Equity Investment into CityState Capital Asia

PEARL RIVER, NY--(Marketwire - February 15, 2011) - U.S. RE Securities, LLC, the investment banking arm of The U.S. RE Group, completed advisory services relating to the successful financing for an equity investment in CityState Capital Asia (CCA), Peter Rawlings, Chairman, announced. Greg Nelson, Senior Vice President of U.S. RE Securities led the advisory team. Terms of the investment were not disclosed.

CityState Capital Asia is a recently formed holding company established for the purpose of creating a diversified Pan-Asian insurance group consisting of insurance underwriting and broking businesses across Southeast Asia. CCA's initial insurance underwriting segment will be developed based on the existing property and casualty operations of EQ Insurance Company Limited, which currently operates primarily out of Singapore. The insurance broking segment of CCA will initially consist of the current holdings of Newstate Stenhouse Holdings Pte Limited that currently has a presence in Singapore, Malaysia, China and India.

Funds raised from this investment and from future tranches of capital will be utilized to acquire targeted insurance businesses across Southeast Asia and to expand and build out the existing operations of CCA. CCA will operate a "buy" and "build and operate" strategy that involves identifying and acquiring profitable general insurance underwriters and insurance broking targets in Asia that have significant unrealized potential, with the objective of improving these businesses by leveraging the existing operations of CCA to achieve synergies, enhance top-line growth, and improve margins across business units. CCA's long term objective is to create a regional insurance group with over US$500 million of capital and US$2 billion of written premiums, with operations spanning both mature and emerging markets throughout Asia.

"U.S. RE has had a long-standing relationship with the principals of CCA, including its Chairman Leow Siak Fah, who has decades of experience in the insurance industry in the region and who has a distinguished track record operating, acquiring and divesting successful insurance businesses. We are pleased to have been involved in raising CCA's first institutional equity tranche and look forward to working with the company to expand its capital base to support its aggressive regional growth strategy going forward," Nelson said.

U.S. RE Securities, LLC is a licensed broker-dealer and member of FINRA and SIPC that offers boutique investment banking services focused on the insurance industry including mergers and acquisitions, capital markets, and securitization services to clients operating globally.

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