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To: Dale Baker who wrote (31199)	9/25/2002 7:34:26 AM
From: Dale Baker	Read Replies (1) \| Respond to of 118717

ACGL gets another $80m in capital: More Bucks to Work With by: dabmu (39/M/Netherlands) Long-Term Sentiment: Strong Buy 09/25/02 07:33 am Msg: 66 of 66 Notice that shareholder equity is now $1.25 billion? With the new shares, book value sits around $20 for a profitable reinsurance play. NEW YORK -(Dow Jones)- Arch Capital Group Ltd. (NasdaqNM:ACGL - News) said its principal shareholders and other investors exercised for cash the Class A warrants that they purchased as part of a capital infusion in November. Last fall, the Bermuda-based insurance holding company closed $763 million in private equity funding led by private equity firms Warburg Pincus LLP and Hellman & Friedman LLC, increasing its capitalization to more than $1 billion of invested capital. In a press release Tuesday, Arch Capital said Chairman Robert Clements also exercised for cash 120,000 of his Class A warrants. A total of 3.8 million common shares were issued upon the exercise of all outstanding Class A warrants, which were exercisable for $20 a share and were scheduled to expire Sept. 19. Payment of the exercise price for the Class A warrants increased shareholders' equity by about $74 million. Total shareholders' equity at June 30 was $1.25 billion. Arch Capital's shares closed at $27.20, down 40 cents, or 1.4%, on Nasdaq volume of 52,000 shares. Average daily volume is 54,918 shares. -Dorothea Degen; Dow Jones Newswires; 201-938-5400