Fairfax I.S. PLC has completed a successful introduction to AIM through the placing of 1,023,767 shares in the Company at the placing price (the “Placing Price”) of 97 pence. The Company’s market capitalisation on Admission at the Placing Price will be £36,089,060. The Company will be traded under the symbol AIM: CBRA.L.

The Group was formed in 2006 through the amalgamation of six separate companies under a single parent company, COBRA Holdings PLC, creating a business capable of providing a wide range of services in five distinct areas of the insurance market. It has one of the fastest growing UK networks, with in excess of 100 independent insurance brokers. In addition, it offers retail insurance, wholesale Lloyds facilities, underwriting capacity and financial services. The Group has expanded over the last year due to both organic and acquisition growth.

KEY POINTS

• Strong market reputation as an insurance network: the COBRA network was created in June 2003 to assist the development of the business of the Group and the businesses of its network. The COBRA network has over 100 members, with a combined premium income in excess of £350 million


• Long established presence in the retail sector: COBRA Insurance Brokers Limited was created following the merger of three large provincial firms in the south east of England. Since January 2006, it has acquired a further two local firms and has an option on a third. Firms in other regions of the UK have been successfully purchased, with more in the pipeline, with a view to developing the company’s presence in regional hubs around the country


• Underwriting agency for both its own and Network Members’ clients: this agency delivers a dedicated policy range to the network members and offers advantages to insurers by reducing administration and servicing costs. The underwriting agency is expected to underwrite premiums in excess of £8 million during 2007 and the Directors believe that this figure will rise to £18 million during the year ending 31 December 2008


• Lloyd’s broking division: COBRA London Markets places risks with both the Lloyd’s and non-Lloyd’s markets and also places re-insurance for underwriters. There are three distinct operating divisions being liability, property and international


• Financial services: as the Group continues to expand, COBRA Financial Services has the ability to increase business from network members, agents and its own expanding client base


• Strong management team: Track record of delivering organic growth and integrating acquisitions


• Pursuing acquisitive strategy: following the integration of eight companies over the past 15 months, the Group has the ability to effectively merge the businesses and clients of acquired brokers into its core activity and to take advantage of appropriate synergies


• The Group intends to fund acquisitions from a variety of sources. In particular funding has already been agreed with insurer and corporate partners for the current acquisitions under negotiation, with additional loans available for future opportunities


Listing Exchange: AIM
Listing Date: 05/07/2007
Gross Funds Raised: £993,053
Nominated Adviser: Dawnay, Day Corporate Finance Ltd
Broker: Fairfax I.S. PLC