Risk Capital Re Acquires Interest In The Arc Group, LLC

Business Wire, July 28, 1997

GREENWICH, Conn.--(BUSINESS WIRE)--July 28, 1997--Risk Capital Reinsurance Company, a wholly owned subsidiary of Risk Capital Holdings, Inc. (NASDAQ: RCHI), announced that it has acquired a minority ownership interest in The ARC Group, LLC, a Long Island- based wholesaler of specialty insurance. ARC's founders, Christopher Cavallaro, Richard Fierstein and Albert Salvatico, together retained the largest stake in ARC and continue to have managerial control of day to day operations.

ARC, founded in 1986, is an independent wholesale insurance broker and managing general agent specializing in the placement of professional liability insurance, primarily directors and officers liability coverage. ARC will continue to operate as an independent wholesaler, obtaining its business from a network of several hundred agents and brokers located throughout the United States. In 1996, ARC placed approximately $180,000,000 in total premiums.

Marsh & McLennan Risk Capital Corp. advised Risk Capital Re in structuring and negotiating the investment.

Risk Capital Holdings, Inc., through its wholly owned subsidiary Risk Capital Reinsurance Company, provides reinsurance and other forms of capital, either on a stand-alone basis, or as part of integrated solutions for insurance companies with capital needs that cannot be met by reinsurance alone.

CONTACT: Mark D. Mosca, Peter A. Appel and Paul J. Malvasio

Risk Capital Reinsurance Company

203/862-4300