Pre-IPO analysis & report from IPOdesktop.com
Darwin Underwriters (DR) -- Pre-IPO grade=C+, score=6, priced at $16
Priced top of range at $16, price range mid-point
Grading & scoring system
Note: P/E ratio based on annualizing results for the March quarter

Darwin Underwritrs

DR, C+, 6

specialty insurance

Post-IPO shrs:17mm

Farmington, CT

2004

2005

Mar 31 qtr

IPO Mkt

Revenue ($mm)

$47

$89

$31

Cap (mm)

Combined ratio*

99.9%

97.3%

96.6%

$272

Net income ($mm)

$0.0

$3.7

$2.8

@$16

Net income %

0%

4%

9%

*loss and expense

VALUATION RATIOS

IPO Mrkt

Price /

Price /

Price /

Price /

% offered

Cap (mm)

Sales

Earnings

BookValue

TangibleBV

in IPO

Darwin Underwritrs (DR)

$272

2.2

24

1.4

1.4

31%

SCORECARD

Mgt

Market

Market Do-

Proprie-

Total

1-5, 5 is high

Growth

mination

tary

rating

20 is perfect

2

2

1

1

6

Business

. Specialty insurance group focused on the professional liability insurance market and

related lines.

. Three broad professional liability lines of business: Directors and Officers,

Errors and Omissions ("E&O"), Medical Malpractice Liability

. Currently owned 90% by Alleghany and 10% by management

. Formed in March 2003

History & AMBest rating

. Formed in March 2003 by Stephen Sills, President and CEO and Alleghany, the ultimate

parent company

. Currently rated "A-" (Excellent) by A.M. Best.

Competition

Major competitors include American International Group, Inc., The Chubb Corporation,

XL Capital Ltd., The St. Paul Travelers Companies, Inc., Lloyd’s of London, ACE Limited,

Liberty Mutual Group Inc., The Hartford Financial Services Group, Inc., The Navigators

Group, Inc., HCC Insurance Holdings, Inc., United States Liability Insurance Group,

OneBeacon Insurance Group LLC, Odyssey Re Holdings Corp., CNA Financial

Corporation, Arch Insurance Group, Inc., AXIS Capital Holdings Limited and Zurich

Financial Services.

Use of $75mm in IPO proceeds

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