GE Capital Buying Eagle Star Re

GE Capital today announced it has agreed to acquire Eagle Star Reinsurance Company Ltd., UK, an international reinsurance company, from Zurich Financial Services. Eagle Star Re will become part of GE Capital's Employers Reinsurance Corp. Terms of the transaction were not disclosed.

GE Capital and Zurich Financial Services anticipate the transaction will be completed by year-end, subject to regulatory approval. The transaction does not include business written by Eagle Star before 1993, except for certain specific aviation lines written through British Aviation Insurance Group.

Eagle Star Re provides reinsurance to clients around the world primarily in the property, casualty and marine markets. It is headquartered in London, with offices in Amsterdam and Rotterdam in the Netherlands as well as in Tokyo and Singapore.

"Adding Eagle Star Re to GE Capital significantly strengthens our position in the UK broker market," said Kaj Ahlmann, chairman, CEO and president of Employers Reinsurance. "This acquisition enhances our ability to offer creative risk management solutions to a larger and more diverse group of customers."

Eagle Star's net assets at year-end 1997 under UK GAAP were GBP 232.8 million.