12 Final Analysis  Cost of capital  Capital structure 75% equity and 25% debt Debt layer was 3 year term structure at L+100 up for renewal in May 2009  Consideration of increased capital commitment relative to returns generated from other businesses  Securitization Market  Effectively closed to innovative risk management transaction like Emerson Re  Asymmetrical upside/downside relationship would return to the business  Decision to exit the business Q4 2008 Considerations
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