Torus Insurance Holdings Limited, a new specialist insurancecompany underwriting from London, said it has agreed to purchasePraetorian Specialty Insurance Company, a shell entity withlicenses that Torus can use to expand its U.S. business.

Financial terms of the agreement to buy Praetorian, a membercompany of QBE the Americas, were not disclosed.

Torus, which began operations in June, noted that PSIC iseligible to do business as an excess and surplus lines insurer in42 U.S. jurisdictions.

Tim Fillingham, chief marketing officer at Torus, said it hasits holding company in Bermuda for the London-based specialtyinsurance underwriting business.

"While we transact out of London, to underwrite business inAmerica we need the various required licenses," he said, explainingthat the company is embarked on a lengthy licensing process in thevarious states and the firm wanted to acquire a shell company "tostrengthen our position in the U.S. market."

Torus said it intends to acquire PSIC through a cashtransaction, which will be completed as soon as the necessaryregulatory approvals have been received.

David Hope, acting chief executive officer of Torus, commented,"This is an important first step in the strategic expansion ofTorus' specialty business in the United States. It will give usimmediate reach into the greater part of the specialty business inthe world's largest market and reflects our commitment to developservices that will differentiate Torus with brokers and customersthrough technical expertise, innovation and a global approach."

Praetorian began business as the U.S. subsidiary of Hannover Reand was sold to Australian QBE Insurance Group Ltd., Sydney, in2007 for $800 million. Mr. Fillingham said that price had nocorrelation with what Torus paid because QBE had taken Praetorian'sbusiness and amalgamated it into their operation.

QBE lists three entities as members of Praetorian FinancialGroup on its Web site: admitted carriers, Praetorian InsuranceCompany and Redland, and Praetorian Specialty Insurance, thenonadmitted insurer acquired by Torus, which Praetorian Financialoriginally bought from Alea North America in October 2006.

Torus involves a group of senior insurance executives whoinvested in the firm along with First Reserve Corporation, whichprovided $720 million equity funding for the firm to beginbusiness. First Reserve is a private equity firm that specializesin the energy sector.

Acting CEO Hope was formerly CEO of the London operations of TheNavigators Group Inc.

Torus has authorization to operate from the UK FinancialServices Authority and Bermuda Monetary Authority.

The firm began writing business July 1 as a technical linesinsurer specializing in large, complex risks with a particularfocus on the energy sector starting with onshore and offshoreenergy and other large industrial property. It said it plans onmoving into other lines during the next twelve months.

Torus said it combines high levels of technical underwritingdiscipline with in-depth engineering and energy industryunderstanding, and First Reserve Corporation's 25 years of energyindustry experience gives Torus access to a valuable knowledge pooland technical insight.