Risk Capital Re Acquires Interest In Stockton Holdings Limited

Business Wire, June 30, 1998

GREENWICH, CONNECTICUT--(BUSINESS WIRE)--June 30, 1998--Risk Capital Reinsurance Company, a wholly owned subsidiary of Risk Capital Holdings, Inc. (NASDAQ: RCHI), announced that it has invested $10,000,000 to acquire a minority interest in Stockton Holdings Limited, a Cayman Islands insurance holding company. Risk Capital Re's investment was made as part of a $173,500,000 private placement by Stockton Holdings. In connection with its investment, Robert Clements, Risk Capital Re's Chairman, has become a member of Stockton Holdings' Board of Directors.

Stockton Holdings conducts a world-wide reinsurance business through its wholly owned subsidiary Stockton Reinsurance Limited, a Bermuda-based company writing specialty risks with a focus on finite products.

Risk Capital Re was advised by Marsh & McLennan Risk Capital Corp. in connection with the transaction.

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 Mosca, Peter Appel, Bonnie Boccitto

and Paul Malvasio

Risk Capital Reinsurance Company

(203) 862-4300