Formation of Calais Reciprocal Insurance Exchange

Transaction Overview

AmRisc, LLC ("AmRisc"), a subsidiary of CRC Group, launched Calais Reciprocal Insurance Exchange ("Calais")

• Calais is domiciled in Illinois and has been assigned a financial strength rating of A- (Excellent) by AM Best
• AmRisc will serve as the exclusive managing general agency for Calais

Established in 2000, AmRisc is a market leader in underwriting coastal commercial E&S property insurance

• AmRisc writes over $2bn of E&S premium partnering with the world’s leading insurance carriers and capacity partners

With $100 million of funding, Calais will provide additional capacity for AmRisc's coastal commercial E&S property insurance portfolio

• Calais will benefit from AmRisc's expertise in commercial property underwriting
• Calais is funded by Stone Point Capital, CD&R, and other highly respected financial and strategic investors

Calais joins AmRisc's existing carrier panel offering coastal commercial E&S property and California Difference in Conditions insurance

• Adding Calais to AmRisc's carrier panel provides policyholders with diversifying and dedicated capacity, enhancing stability in dislocated coastal markets

Howden Capital Markets & Advisory Role

HCMA acted as exclusive financial advisor in the formation and structuring of Calais; key roles and responsibilities included:

• Assistance in preparing Calais’ business plan, financial projections, and regulatory / rating agency materials
• Preparing financial packages and materials for potential investors
• Marketing the transaction to potential investors and facilitating investor discussions
• Structuring the transaction and assistance with negotiation of deal terms & conditions
• Rating agency advisory and oversight to achieve desired A- AM Best rating including extensive BCAR modeling analysis and support
• Assistance in reinsurance structuring
• Assistance throughout the regulatory approval process

This transaction further solidifies HCMA as the market leader in reciprocal exchange formations

• The successful formation of Calais represents HCMA’s 11th reciprocal exchange formation since 2017
• In addition, HCMA has completed many other M&A and capital raising transactions involving reciprocal exchanges