The Black Diamond Group Announces Formation and First Transaction Launch of the Black Diamond Group, a merchant bank and advisory company, specializing in insurance company restructurings.

NEW YORK, NY - November 6, 2001 - The launch of the Black Diamond Group, LLC (BDG), a merchant bank and advisory company specializing in the insurance industry, was announced today.

Black Diamond was established to participate in transactions as principal, advisor or reinsurance intermediary. The Black Diamond team, who have worked together in the past, have a proven record of innovation in reinsurance products and corporate restructurings. As the industry enters a new phase, Black Diamond sees opportunities to work with company management, owners and regulators in situations where Black Diamond's capabilities can add value.

Black Diamond today has announced its first transaction through its participation in an acquisition of Alleghany Underwriting Ltd (AUL), a subsidiary of Alleghany Corporation, by Talbot Holdings, a newly formed Bermuda Holding company owned by principals of Black Diamond and management of AUL. Alleghany Underwriting Ltd operates at Lloyd's of London, managing Syndicate 376 that underwrites a variety of marine, aviation and non-marine risks.

Heidi Hutter commented, "I am pleased that our first transaction again has me involved in the Lloyd's market. I continue to be convinced of the strength of Lloyd's and see exciting possibilities for the future of the market."

Jay Novik commented, " The soft underwriting cycle of the past few years has been hard on many fine companies in the insurance business which has been exacerbated by the recent tragic events in the US. We seek to be involved in turn-around situations with companies that have a good infrastructure in spite of their current problems. We believe that market improvements will provide an excellent opportunity to return these companies to their earlier levels of profitability. We have considerable experience in helping companies work out of problems in the past two decades."

For further information, please contact:
In the UK: Marc Moninski/Catherine Spaul, Fishburn Hedges:
020 7839 4321
In the US: Ellen Friedman, Kiosk Communications: 212 874-1612

Notes to Editors:
New Ownership Announced for Alleghany Underwriting Ltd - for additional information on the transaction, please refer to the press release from Alleghany Corporation.

Black Diamond Team