May 30, 2002

Wellington Underwriting plc - Formation of Wellington Re and Potential Capital Raising

Commenting on behalf of Wellington, Julian Avery, Chief Executive of Wellington, said:

“This new London-based company takes forward our strategy to exploit fully the dramatically improved rating environment. The strong support that we have received is further recognition of the quality of our underwriting track record and our prospects in this highly attractive market. This latest initiative will allow Wellington to build further on its leading position in the Lloyd’s market and enhance returns to our shareholders and third party capital providers.”

Commenting on behalf of Wellington Re, Chris O’Kane, Chief Executive of Holdings, said:

“The establishment of Wellington Re creates a significant new force in the London insurance market. Strongly capitalised and with a talented and experienced team of underwriters, Wellington Re will combine financial strength with responsiveness and high levels of service. We are delighted that Paul Myners and Heidi Hutter have agreed to join the Board of Holdings.”

Commenting on behalf of Blackstone, Bret Pearlman, Senior Managing Director, said:

“Blackstone is extremely pleased to partner with Wellington, Paul Myners, Chris O’Kane and Chris’s team in the creation of Wellington Re. The track records, reputations and capabilities of these parties are, in our view, exceptional. We further believe that Wellington Re represents a major new commitment of capital to the London insurance market, reflecting and enhancing its role as the global center for the conduct of insurance and reinsurance business.”

Commenting on behalf of Candover, Marek Gumienny, Managing Director, said:

“We have had a long relationship with Wellington and we are delighted to be backing Chris O’Kane and his team. Wellington Re is a quality franchise in the London market which we believe will receive significant broker support.”