Trenwick Sells LaSalle To Endurance

NU Online News Service, May 17, 4:20 p.m. EST?Trenwick Group Ltd. in Bermuda yesterday sold the in-force property catastrophe reinsurance business of its subsidiary, LaSalle Re Limited to Endurance Specialty Insurance, Ltd.

The business involved was as of April 1. Trenwick and Endurance effected the in-force business sale through a 100 percent quota share reinsurance agreement, with Endurance paying Trenwick a 25 percent ceding commission and additional profit sharing of 50 percent if losses do not exceed a loss ratio of 45.0, according to Trenwick.

LaSalle Re last year had $133 million of premiums in force, and as of April 1, it had approximately $60 million in net unearned premium reserves.

As part of the deal, Hamilton-based Endurance will not take on any past liabilities from LaSalle Re. Certain historic LaSalle Re business that had previously been placed in runoff, as well as an existing corporate investment in Lloyd's will be retained by LaSalle Re.

In addition, Endurance will have the right to renew existing LaSalle Re contracts as they expire in exchange for a 12.5 percent commission on the business renewed.

Nearly all of LaSalle's employees have been offered comparable positions at Endurance.

James F. Billett, Jr., Trenwick's chairman, president and chief executive officer said: "The transaction immediately provides Trenwick with greater financial flexibility and reduces significantly our exposure to the volatility and significant capital requirements inherent in the property catastrophe business."

At Endurance, Kenneth J. LeStrange, CEO and president of Endurance, said: "We are very pleased to have reached this agreement with Trenwick, and, in so doing, to have completed the build-out of our property catastrophe and Bermuda platforms within just five months of our founding.

"This carefully considered transaction makes Endurance a powerful resource for our clients--combining the talented employees and impressive client base of LaSalle Re with Endurance's strong capital base, broad array of products, experienced management team and strong investor group."

Special Reports /

Trenwick Sells LaSalle To Endurance

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