Jupiter Resources Signs Letter of Intent for the acquisition

 

Tuesday, Mar 31,2009, 11:35:26 PM   Click:

Copyright: PR Newswire
Source: PR Newswire
Wordcount: 885

VANCOUVER, March 30 / PRNewswire-FirstCall / - Jupiter Resources, Inc. (OTC Bulletin Board: JPIT) is pleased to announce that it has signed a letter of intent to purchase 100% of the issued and outstanding share of NatProv Holdings, Inc. ( "NatProv). NatProv, through its 81% owned operating subsidiary, is a specialty reinsurance company offering insurance products in markets where traditional reinsurance alternatives are limited. It also sells directly to a variety of goods and insurance products to businesses worldwide.

For the year ended December 31, 2008, NatProv operating subsidiary had gross revenues of $ 15006827, net income of $ 5833870 and total equity of $ 29,851,191.

NatProv of direct insurance business currently includes a range of business insurance products, such as directors and officers liability insurance, insurance, financial guarantee, the excess of the liability insurance and umbrella, insurance, and inland marine and product liability insurance. The business of reinsurance is an arrangement whereby the reinsurer agrees to indemnify its clients against insurance company all or part of the insurance risks underwritten by the customer under one or more policies of insurance. As a reinsurer, NatProv bears some risk of the insurer in exchange for a portion of the premium payable by the insured to the insurer. Offer an insurer for reinsurance with several advantages, including a net reduction of responsibility on disaster risks and protection of large or multiple losses. Reinsurance also provides the insurance company with its underwriting capacity to accept greater risks and write more business than would be possible without an increase in capital and surplus.


NatProv reinsurance strategy is to build a portfolio tailored "frequency" and "seriousness" of agreements with some reinsurance of insurance companies that are designed to meet the needs of the insurer that are not met in the traditional market of reinsurance. "Frequency" reinsurance contracts generally contain a potentially large number of small losses of several events, while "gravity" of the contracts have the potential for significant losses of an event. As an example of a frequency of reinsurance NatProv the reinsurance business is composed of reinsurance non-standard personal automobile insurance policies of the United States to an insurer. The motor insurance policies are designed to provide coverage to drivers who normally can not obtain standard insurance carriers as a result of various factors. These policies are generally issued to the limits of the minimum coverage required under state laws and have relatively low individual premiums. However, they have a relatively high frequency losses.

NatProv intends to expand its reinsurance business to provide other contracts of reinsurance companies, insurance companies offering frequency and severity of hedging policy. In addition to the subscription contracts customized NatProv May, from time to time, participate in traditional reinsurance programs, which he said he would give a good return on equity. NatProv intend to purchase reinsurance contracts if it believes it can model, analyze and monitor risks effectively. Its insurers are responsible for both reinsurance and direct property and casualty insurance contracts starting in the final decision, including underwriting, pricing, maintenance, monitoring and claims of products. NatProv believes that this integrated approach will result in contracts for senior management, better customer service and higher economic returns in the long term.

NatProv's investment strategy, as its strategy of reinsurance, is designed to maximize returns over the long term while minimizing the risk of capital loss. Contrary to the investment strategy of many of its competitors, which invest primarily in fixed income securities, either directly or through fixed agreements with one or more investment managers, strategy of investment is to invest in long and short positions primarily in public equity and corporate debt securities.

Jupiter Resources was incorporated in June 2006 to operate a demand for minerals in Canada. Jupiter believes that the recent global financial conditions have resulted in May in the sector of financial services are available for evaluations. The letter of intent to acquire NatProv Jupiter represents entry into this new sector of financial services. Jupiter's intention to suspend the operation of its business sector mineral exploration.


The proposed transaction is subject to negotiation and execution of definitive agreements, due diligence and regulatory approval.

Safe Harbor Statement

This press release contains forward-looking statements which consist of any statement other than the recitation of historical facts and can be identified by the use of forward-looking words such as "May", "expect", "anticipate", "estimate "," plan "," continue "or the negative thereof or other variations or comparable terms. The reader is cautioned that all forward-looking statements are speculative, and there are certain risks and uncertainties that could cause actual events or results to differ materially from those contained in these forward-looking statements.

We caution that these statements are further qualified by important factors that could cause actual results to differ materially from those contained in the forward-looking statements that are necessarily speculative, and there are certain risks and uncertainties that could ensure that events or results to differ materially from those described in these forward-looking statements. These risks and uncertainties include those set forth from time to time in our filings with the Securities and Exchange Commission. We are under no obligation and does not undertake any obligation to update these forward-looking statements at any time.

SOURCE Jupiter Resources, Inc.

CONTACT: Vicki Smith of Jupiter Resources, Inc., +1-212-631-5805, investorrelations@jupiterresources.net