The global insurance industry had worldwide premiums exceeding $3 trillion in 2004, approximately 34% of which were associated with business written in the United States. The U.S. insurance industry is generally divided into two distinct segments: life and health, and non-life. There are currently 962 life insurance companies in the U.S., representing 55% or $537 billion of 2004 net premiums written, and 2,400 non-life companies representing 45% or $438 billion of 2004 net premiums written. At year end 2004, U.S. industry-wide surplus measured $646 billion, with life insurance companies accounting for 38% or $244 billion and non-life companies accounting for 62% or $402 billion.

Over the last 10 years, the U.S. life insurance industry experienced a number of conversions of policyholder-owned companies, known as mutual companies, into stockholder-owned companies. This was the direct result of increased competition in the marketplace and the need for external capital to help their businesses to grow, either organically or through acquisition. By far, the most common structure today is the stock insurance company which represents approximately 89% of all U.S. life insurers.

Non-life insurers provide coverage for damage, loss or injury to the insured, as well as for liability from acts that cause property damage, injury or financial loss to a third party. Non-life insurers may also be licensed to underwrite health insurance. The business divides broadly into personal lines and commercial lines.

Notwithstanding the record-high catastrophe losses in 2005, the U.S. non-life industry reported overall operating profits of $48.4 billion, a 20% increase from 2004 year-end results. These results were driven by solid investment returns and the compounded effect of rate increases over the past 5 years. Since the middle of 2001, beginning even before the catastrophic events of 9/11, the commercial non-life market has enjoyed extremely favorable pricing. Prices increased by 15.8% in the last six months of 2001, 30.2% in 2002, 18.1% in 2003 and 5.9% in 2004 before showing a slight reduction of 3.1% in 2005. As a result, 2005 commercial lines saw prices that were, on average, almost 58% higher than 2001 even though they reduced slightly as the year progressed.

While the Company may seek to effect business combinations with more than one target business, it is likely that it will have the ability to initially complete only a single business combination, although this may entail the simultaneous acquisitions of several operating businesses.

To date, the Company has not selected any target business with which to seek a business combination. None of the Company’s officers, directors, promoters or other affiliates is currently engaged in discussions on its behalf with representatives of other companies regarding the possibility of a potential merger, capital stock exchange, asset acquisition or other similar business combination. Additionally, the Company has not engaged or retained any agent or other representative to identify or locate any suitable acquisition candidate.