Corporate Structure

Invicta benefits from the resources of its sponsors, Massachusetts Mutual Life Insurance Company ("MassMutual") and Babson Capital Management, resulting in a highly competitive and efficient organization.

Invicta Capital was initially capitalized with $400 million with a $150 million equity investment from MassMutual and a $250 million combination of AAA and AA term and auction rate debt. As of June 30, 2008, MassMutual sold a majority of the voting equity in the Invicta Financial Group to a third party investor group. MassMutual remains Invicta's single largest investor.

Invicta Credit provides credit protection in the form of credit default swaps to institutional counterparties. Within the structure of the Invicta companies, Invicta Capital guarantees Invicta Credit's obligations to each counterparty.

As shown in the chart below, Invicta is closely tied with MassMutual and Babson Capital Management via service agreements. These service agreements allow for Invicta to access expertise in credit and capital portfolio management, financial analysis and accounting, debt servicing, and regulatory and legal matters without supporting a large infrastructure.