Bermuda-based insurer Ironshore Insurance yesterday announced equity financing worth up to $300 million to help support its expansion.

Private-equity firm GTCR Golder Rauner LLC has committed to buy $200 million of newly issued Ironshore equity, with up to $100 million of equity expected to be purchased by some existing shareholders of Ironshore through the exercise of pre-emptive rights.

Ironshore, which is a privately-held company, was set up in early 2007 with around $1 billion in capital.

Its expansion, particularly through its US operating subsidiaries IronPro, IronHealth and IronBuilt, has been rapid. Last week Ironshore chief executive officer Kevin Kelley told The Royal Gazette the company expected to double its business, in terms of gross premiums written, this year.

"We have built a diversified platform with experienced and well established underwriting teams across a variety of specialty property and casualty classes," Mr. Kelley said yesterday.

"We have tremendous momentum in the market and this additional capital will allow us to continue to expand our position with our clients.

"We see significant dislocations in selected segments of the market which will enable us to quickly and profitably deploy the capital."

Mr. Kelley added "I look forward to working with GTCR as we continue to build our company. We are also grateful for the ongoing support of our existing investor group who are great partners. I believe Ironshore is uniquely positioned to capitalise on opportunities available in the specialty insurance market."

Merrill Lynch & Co. and Aon Benfield Securities, Inc. acted as placement agents for Ironshore, and Dewey & LeBoeuf LLP provided legal counsel.

Fox-Pitt Kelton Cochran Caronia Waller acted as exclusive financial adviser to GTCR in connection with the transaction, and Kirkland & Ellis provided legal counsel.