NEW YORK and LONDON: May 3, 2000 – Jardine Lloyd Thompson Group plc (FTSE: JLT), a leading UK-based provider of risk solutions and insurance services, and The Blackstone Group, a New York-based private investment bank, today announced the formation of a joint venture, Capital Risk Group LLC (CRG). CRG is owned 80% by JLT, with a 20% interest coming from a fund for which The Blackstone Group is both the manager and an investor. CRG will be based in New York City and Princeton, New Jersey.
Peter G. Peterson, Chairman of The Blackstone Group, will serve as non-executive Chairman. Steve McGill, a Director of Jardine Lloyd Thompson Group plc and Chief Executive of its subsidiary JLT Risk Solutions Limited, has been named CRG’s Chief Executive Officer.
CRG’s subsidiary, Capital Risk LLC will design and place specially tailored risk transfer and risk financing programs, concentrating on major US and multinational corporations. Capital Risk LLC will also focus on the development of blended risk solutions using innovative insurance techniques. In addition, Capital Risk LLC will offer related consulting services.
James Hutchin, formerly Chief Executive of IRMG Risk Advisory & Captive Management Services, has been named President of Capital Risk LLC.
It is anticipated that CRG will access business from its parents’ existing relationships and insurance brokers in the United States. CRG is being launched with a multi-disciplined team of senior JLT practitioners. It will have extensive analytical, research and marketing capabilities at its disposal, and will receive additional support from JLT Risk Solutions’ existing operations.
Announcing the new venture, CRG non-executive Chairman Peter G. Peterson commented, “Blackstone is pleased to be part of this new venture and to be able to offer the services of Capital Risk to our corporate relationships. Jardine Lloyd Thompson is a fine organization, and we look forward to working with JLT to create the innovative solutions to risk management issues that today’s environment demands.”
Ken Carter, Chief Executive of Jardine Lloyd Thompson Group plc added, “JLT has always addressed the needs of its clients as its foremost priority. When we created JLT Risk Solutions, just a year ago, we responded to a demand for broader services. The establishment of CRG takes that commitment one step further as it concentrates on solutions for progressive risk transfer and risk financing by drawing upon the collective expertise of CRG’s shareholders.
I am confident that Capital Risk Group will be a very successful venture for Jardine Lloyd Thompson Group and The Blackstone Group; both in its own right and through the value it adds to our respective core businesses.”
Notes to Editors:
Jardine Lloyd Thompson Group plc is the world’s fifth largest insurance broker and the largest UK and European based broker quoted on the London Stock Exchange with a market capitalization of US$700m. JLT operates in 35 countries with 3,600 staff and services premiums of US$3.85bn.
In 1999, JLT reported revenue of US$429m and pre-tax profit (before exceptional items) of over US$100m. JLT conducts its business through two groups: JLT Risk Solutions and JLT Corporate Risks & Services. CRG will operate within JLT Risk Solutions.
JLT Risk Solutions designs, markets and services risk transfer programs and transactions on behalf of large corporate customers and retail insurance brokers, utilizing both conventional insurance and alternative risk transfer mechanisms. In addition, it provides management and other related services to corporate clients’ risk financing vehicles including captive insurers.
The Blackstone Group is a leading private investment bank based in New York City, which was founded in 1985 by its Chairman, Peter G. Peterson and its President and CEO, Stephen A. Schwarzman. Blackstone is engaged in six business lines including Private Equity Investing, Mergers and Acquisitions Advisory, Restructuring and Reorganization Advisory, Private Equity Real Estate Investing, Private Mezzanine Investing and Liquid Alternative Asset Investing. Blackstone and its funds have made investments and/or have fund commitments of over $12 billion for alternative asset investing.