Lockton, Inc. to Acquire London-Based Alexander Forbes International Risk Services; Creates Independent Insurance Brokerage Powerhouse with $600 Million in Revenues and Local Client Support on Four Continents.

LONDON -- Lockton, Inc. today announced that it has reached a definitive agreement to purchase Alexander Forbes International Risk Services, the international brokerage operation of Alexander Forbes Limited (JSE:ALEXFBS), the world's ninth largest insurance broker. The $170 million (GBP 90.2 million) transaction will make Lockton the largest independent, privately owned global insurance broker.

The combined business will have more than $600 million in revenues and 3,700 professionals with locations in Europe, North America, Latin America and Asia. Alexander Forbes International Risk Services' operation, in combination with its position in the European broker partnership EOS RISQ, gives Lockton the ability to serve clients from 142 local offices in 43 countries.

The acquisition, which is subject to regulatory approvals, is expected to be completed by the end of October 2006. Following completion, the business will operate under the Lockton name and remain based in London.

The purchase includes Alexander Forbes' insurance brokerage operations in corporate risk, professional indemnity, property, construction, aviation, marine, energy and specialist business such as political risk and contingency.

Lockton Companies had 2005-06 revenues of $409 million (GBP 216 million) and 2,100 people. The Alexander Forbes businesses to be acquired had 2005-06 revenues of $202 million (GBP 107 million) with a staff of 1,600 people.

"We know this company very well. For the past decade, our teams have worked side-by-side to provide international insurance and risk management solutions to most of Lockton's U.S.-based clients," said David M. Lockton, Chairman of Lockton, Inc. "Lockton's unique private ownership has provided a superior level of service to clients for the past 40 years. This is the perfect opportunity to expand globally."

John L. Lumelleau, Lockton Chief Executive Officer, added, "Alexander Forbes has an impressive global platform and expertise. This provides Lockton with the ability to serve our clients with an even broader array of global risk management expertise with local insight and services."

Mike Hammond, Deputy Chairman of Alexander Forbes International Risk Services, will become Chairman of Lockton International Holdings. "This is a landmark deal," Hammond said. "We are building a great company that will attract and retain the best people in the industry, and create a powerful independent alternative for buyers when choosing their worldwide partner."

Stewart McCulloch, Chief Executive Officer of Alexander Forbes International Risk Services, will become the CEO of Lockton International Holdings. "Lockton has been a valued business partner of ours for more than a decade, so we go into this new enterprise with the greatest of confidence. The operations of our two businesses complement each other, both in terms of geographical presence and the skills that we all bring to the table."

John Percy-Davis, current Executive Chairman of Alexander Forbes International Risk Solutions, will work closely with Lockton's international team and continue as Chairman of EOS RISQ, the European broker partnership.

Lockton will have majority ownership in Lockton International Holdings Limited, the new entity, with minority investment from management and Trident III, L.P., an investment fund managed by Stone Point Capital, LLC of Greenwich, CT.

"We value the Stone Point participation in this acquisition, and look forward to working with them in growing our international business," said David Lockton. "We nonetheless are fiercely committed to our independence because it allows us to make long-term investments in our people and our company, so we can offer superior service to our clients." Lockton will remain a privately held firm owned by the Lockton family and key executives.

Notes to editors

The 2,100 risk experts at the Lockton Companies provide more than 15,000 clients across the U.S. with insurance, surety and risk management services, offering an uncommon level of client service. From a modest, home-based insurance agency, Lockton has become one of the largest insurance brokers in the world. It was founded by Jack Lockton in Kansas City, Missouri, USA, in 1966. It is the largest independently owned insurance broker in the U.S. and the 11th largest broker in the country. You can learn more at www.lockton.com.

The Alexander Forbes group of companies is one of the top 10 global independent risk and financial services organisations and employs around 6,000 people. Alexander Forbes delivers services throughout the world to businesses of all sizes, as well as individual clients, from a network of offices in 30 countries. Alexander Forbes is listed on the JSE in South Africa.

Alexander Forbes International operations include Risk Services and Financial Services divisions. This transaction relates only to the International Risk Services division. Its UK insurance business (Alexander Forbes Risk Services Limited trading as Alexander Forbes International Risk Services) provides insurance and reinsurance broking, risk and insurance programme management and consulting, alternative risk finance, claims management and insurance products and services. Alexander Forbes Risk Services Limited is authorised and regulated by the Financial Services Authority. The International Risk Services division also has operations in Mexico, Brazil and throughout Asia.

Alexander Forbes International Financial Services businesses include retirement fund administration, employee benefit consulting, software development, actuarial and related services, personal financial planning, direct marketing of financial products and multi-manager investment solutions and personal finance planning. None of these Financial Services operations are involved in this transaction.

For more information on Alexander Forbes and its insurance, risk and financial services, please visit the website at www.alexanderforbes.co.uk

Stone Point Capital LLC is a global private equity firm based in Greenwich, Connecticut. Stone Point Capital serves as the manager of the Trident Funds, which have raised more than $3 billion in committed capital to make investments in the insurance, employee benefits and financial services industries. Prior to the formation of Stone Point Capital in 2005, the principals of the firm led the private equity firm MMC Capital, Inc.

EOS RISQ is a leading provider of insurance broking and risk consultancy to European and global enterprises. You can learn more at www.eosrisq.com.