Endurance Re Acquires Some XL Re Business
NU Online News Service, Oct. 1, 4:07 p.m. EDT?Endurance Reinsurance Corp. of America, U.S. subsidiary of Bermuda-based Endurance Specialty Holdings Ltd., will acquire the majority of XL Re America's surety reinsurance business, the company said.[@@]
The acquisition is on a prospective basis through a renewal rights purchase agreement, and Endurance Re will pay XL Re America a commission on the surety reinsurance business renewed by Endurance Re.
Endurance will also provide XL Re America with assistance in the ongoing management of its current and expired surety portfolio, with more than $50 million of expiring premium subject to the agreement.
Endurance said it is not required to pay those commissions prior to the renewals and is not obliged to pay any minimum commission.
Also as part of the acquisition deal, XL Re America's senior vice president of surety, Laura Shanahan, was moved to a similar position with Endurance Re. Other personnel from XL Re America, including Peter Healy, Suraya Kieffer, Mary Roddy, Sharon Sims and Suzanne Johnson, are also moving to Endurance.
James Veghte, president of XL Re, said that he was "pleased" with the move of Ms. Shanahan and her team to Endurance.
"While the surety reinsurance business does not fit with XL Re America's future strategic direction, I am confident that Endurance Re will recognize value through the efforts of Laura and her team and that our client base will receive the same level of service they have enjoyed with XL Re America," he said.
Endurance was launched during late 2001 after raising roughly $1.2 billion in capital. The company went public in February of 2003, raising $202.3 million in its initial public offering
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