Bermuda-based holding company Antares Holdings Ltd. has been formed by Lightyear Capital LLC, a New York-based private equity firm which focuses on financial services investment.

The new holding company's businesses will include the sponsorship of a new Lloyd's of London syndicate Antares Syndicate 1274, which has obtained approval in principle from the Lloyd's Franchise Board to begin writing for the 2008 year of account with an underwriting capacity of £135 million.

The syndicate will be managed by Chaucer Syndicates Limited, a leading provider of third-party syndicate services, and capital for it will be provided by Lightyear and its partners.

Through an arrangement with WA Wurttembergische Versicherung AG, a leading German insurer, Antares will assume the renewal rights to the existing London market portfolio of WA WurttVers and acquire its UK subsidiary, WA 1Wurttembergische UK Ltd. The renewal rights pertain to an existing diversified specialty insurance portfolio with eight separate lines of business. The business will continue to be run by its current management, led by 32-year industry veteran Stephen Redmond.

"This transaction exemplifies Lightyear's strategy of identifying high-quality, specialty financial services businesses run by talented and experienced management teams," said Donald Marron, chairman and chief executive officer of Lightyear. "In reviewing opportunities in this space, Lightyear identified WA WurttUK, a solid business with significant potential. By repositioning it as a Lloyd's syndicate, the company is now poised for future success and well-positioned to become a recognized leader in its categories."

Lloyd's, the world's leading specialist insurance market with a 319-year history, is currently home to 68 syndicates providing £16 billion in capacity for 2007. By devising tailored, innovative solutions to complex problems, Lloyd's creates a market that enables underwriters to work with brokers to place the world's most specialised risks.

"The Lloyd's platform is the optimal franchise for our clients and for the diversified portfolio of business to be underwritten by the Antares syndicate in 2008," said Mr. Redmond, the managing director of WA WuUK who will be CEO of Antares. "We are delighted to partner with Lightyear Capital. Their industry knowledge, experience, and relationships were invaluable in putting this transaction together."

Lightyear led the transaction and is joined by strategic equity partners Chaucer Holdings Plc. and WA WurttVers and by private equity sponsors Hamilton Lane and Norwest Equity Partners.

Terms of the transaction were not disclosed. The transaction, which is expected to close in the fourth quarter of 2007, is subject to customary regulatory approval and other conditions. Lightyear received financial advice from Aon Capital Markets and legal counsel from Sullivan & Cromwell LLP and Clyde & Co.