SOURCE: Wilton Re

March 20, 2007 16:00 ET

Wilton Re Announces $300 Million of Additional Capital

WILTON, CT -- (MARKET WIRE) -- March 20, 2007 -- Wilton Re, a privately owned life reinsurance group, today reported that it has raised an additional $300 million in committed equity capital. The new commitment has been provided entirely by Lehman Brothers Holdings, Inc., a global diversified financial services company. Commented Chris Stroup, Chairman and CEO of Wilton Re: "Our original business plan suggested aggregate capital investments of approximately $630 million over a three-year period. With a number of significant transactions already completed, we have invested our original equity capital in less than two years. While a good start, our progress also necessitated additional capital to continue growth.

"Working with Lehman Brothers allows us to continue our pursuit of reinsurance and risk opportunities -- large and small," says Stroup. "We look forward to working hard with our new partners at Lehman Brothers in building optimal risk and capital solutions for our clients. We are certain that our clients will benefit from the breadth of products, services and competencies that we will be able to provide through this partnership."

As with Wilton Re's original capital raise, this round of funding will take the form of irrevocable calls to be drawn down as its business requires. Along with the infusion of capital, Lehman Brothers' Capital Markets business will develop its North American "principal at risk" life reinsurance business on an exclusive basis through Wilton Re, further extending the range of solutions offered by Lehman Brothers to its life insurance clients.

David Sherr, Managing Director and head of Global Securitized Products for Lehman Brothers, said, "We see substantial opportunity for further convergence between the capital markets and reinsurance. Our investment in Wilton Re helps us deliver the broadest possible range of capital management capabilities and solutions to our life insurance clients."

Lehman Brothers (NYSE: LEH), an innovator in global finance, serves the financial needs of corporations, governments and municipalities, institutional clients, and high net worth individuals worldwide. Founded in 1850, Lehman Brothers maintains leadership positions in investment banking, equity and fixed income sales, trading and research, private investment management, asset management and private equity. The Firm is headquartered in New York, with regional headquarters in London and Tokyo, and operates in a network of offices around the world. For further information about Lehman Brothers' services, products and recruitment opportunities, visit the Firm's Web site at www.lehman.com.

Wilton Re Holdings Limited provides traditional life reinsurance and insurance Run Off Solutions through its wholly owned operating subsidiaries, Wilton Reassurance Company, Wilton Reinsurance Bermuda Limited, and Wilton Reassurance Life Company of New York. The Wilton Re Group was launched in early 2005 in order to provide a new source of life reinsurance capacity in response to the continuing consolidation in the U.S. life reinsurance industry. Founding investors were CEO Chris C. Stroup, Trident III, L.P., a private equity fund managed by Stone Point Capital, along with private equity funds managed by Vestar Capital Partners and Friedman, Fleischer & Lowe, among others. A.M. Best Co. has assigned a financial strength rating of A- (Excellent) to the Wilton Re Group's operating subsidiaries. This rating was most recently affirmed in October 2006. You can learn more about Wilton Re by visiting www.wiltonre.com.

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