CompWest Open for Business in Calif.

September 27, 2004

CompWest Insurance Company has been licensed as a workers’ compensation insurer by the California Department of Insurance, responding to the significant capacity shortage in the California market.

Trident III L.P., a private equity fund managed by MMC Capital, is the lead investor in CompWest, with members of the management team also investing in the new company. CompWest Insurance is being capitalized initially with $50 million and will commence underwriting immediately.

CompWest, headquartered in San Francisco, will focus on serving the needs of mid-market employers throughout California. The company will work in partnership with a select number of regional independent brokers with significant operations in California and large books of workers’ comp business.

The CompWest management team is led by William Mudge as CEO and Stephen Pogue as CFO. Previously, Mudge served as the CEO of Golden Eagle Insurance Corporation and as chief underwriting officer of Industrial Indemnity. Mudge has more than 20 years of experience in the California workers’ comp market. Pogue, who has more than 25 years of experience in the insurance business, was previously a senior vice president of American Re-Insurance Company.

“CompWest is responding to the urgent need for capacity in the California workers’ compensation market and to the series of regulatory reforms recently enacted by Governor Schwarzenegger and the California Legislature,” Mudge said. “With MMC Capital, we believe we have launched the right company with the right team at the right time.”

MMC Capital, Inc. is a global private equity firm with 20 years of private equity experience. MMC Capital serves as the manager of the Trident Funds, which have raised more than $3 billion in committed capital to make investments in the insurance, employee benefits and financial services industries. MMC Capital has been the sponsor of more than 15 insurance companies, including ACE Limited, XL Capital Ltd. and AXIS Capital Holdings Limited.

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