USI Completes Capital Raising; CNA, Orion, Travelers, Zurich Firms Among Sources

San Francisco-based U.S.I. Holdings Corp. (USI), a commercial insurance and financial services firm, says that several leading insurance and financial services companies have made private equity investments in its business. Among them: The Chase Manhattan Corporation; CNA Financial Corporation; The Equitable Companies; Orion Capital Corporation; Provident Companies, Inc.; The Travelers Insurance Companies; and Zurich Centre Investments, Inc. (ZCI). ZCI and Chase Manhattan made earlier investments in USI.

"We welcome these investors and value the confidence their investments reflect in USI's innovative approach, strategic vision and financial performance," says Bernard H. Mizel, chairman and chief executive officer of USI. "We look forward to strengthening our relationships with our new investors to enhance the breadth, depth and competitiveness of the insurance and insurance-related financial services we provide to our clients."

Michael Hegarty, vice chairman and chief operating officer of The Equitable Companies, says, "We share a common philosophy with USI: To find innovative ways of responding to the evolving financial and insurance needs of middle market business customers."

Terms of the transaction were not disclosed. Warburg Dillon Read LLC served as the agent for USI on the private placement of these securities.

Formed in 1994, USI currently has operations in 21 states. It offers general and special property and casualty insurance; insurance-related financial services such as employee benefits, third party administration, life insurance and related consulting; and insurance wholesale operations.