This page includes Regulatory news filings supplied by issuers listed on the BSX. Please note the BSX is not responsible for the content, accuracy or completeness of announcements filed by issuers and disclaims all liability for any loss arising from reliance on information contained within issuer announcements.
White Mountains Restructures Prospector Partners Relationship
HAMILTON, Bermuda: June 20, 2005 - White Mountains Insurance Group, Ltd. (NYSE: WTM) announced today that it has restructured its relationship with Prospector Partners and John Gillespie, its founder and managing member. Under the revised arrangement, Prospector will manage White Mountains' common equity portfolios, currently around $1.2 billion, for a fixed fee schedule. John Gillespie, Rich Howard, Kevin O'Brien and other current White Mountains Advisors equity professionals will no longer be employees of WM Advisors. The company's fixed income and other portfolios will continue to be managed by White Mountains Advisors.
John Gillespie will remain a director of White Mountains.
Prospector will also advise White Mountains on matters including capital management, asset allocation, private equity investments and mergers and acquisitions. Pursuant to a consulting agreement for those services, White Mountains will pay incentive compensation to Prospector based on the performance of the company and of its total investment portfolio.
The revenue sharing arrangement that was established in June 2001 between Prospector and White Mountains is being terminated. The company will continue to receive the share of the gross fees generated by Prospector to which it is entitled as a result of its founding investment in Prospector made in 1997.
White Mountains' CEO Ray Barrette said, "John Gillespie has been and will remain a great partner for the company. The restructured relationship preserves our access to the superior talent at Prospector Partners while allowing John and his team to further build an independent investment management business. From January 2001 through the first quarter of 2005, this team produced a cumulative time-weighted return in our common equity portfolio of 105% compared to -4% for the S&P 500. Going forward, we expect to receive the high level of attention from John and his partners that has produced these superior returns at roughly the same total net cost."
These revised arrangements are expected to take effect in July.
ADDITIONAL INFORMATION