News | October 29, 1998

Gerling Global Re Finalizes Purchase Of Constitution Re Corporation

Gerling Global Reinsurance Corporation of Cologne, Germany (Gerling Global Re), one of the world's largest international reinsurers, together with its United States subsidiary Gerling Global U.S. Investments Inc. (GGUSI), has completed the acquisition of Constitution Re Corp. and its subsidiaries. In addition, Gerling Global Re has acquired Rex Re, a Bermuda-based company. This transaction concludes an agreement announced in July.

"The acquisition of Constitution Re has strengthened our international presence, and has allowed the Gerling Group to achieve a quantum leap in the U.S. reinsurance market," commented Norbert Strohschen, chairman of the Board of Management of Gerling Global Re. "During the past two years, the Gerling Group has invested more than $1 billion to build and enhance our U.S. franchise. We are confident that the strategic decision to strengthen our U.S. operations will result in significant advantages to clients and brokers."

Gerling Global Re's U.S. operations and recent investments include the following companies held by GGUSI: Gerling Global Reinsurance Corporation of America (GGRCA), Gerling Global Financial Products, and Gerling Global Life Reinsurance Company.

The operations of Constitution Re (CRC), a leading professional reinsurer with a strong franchise of U.S. regional and specialty company clients and annual gross premium writings of more than $600 million, will be combined with those of GGRCA. Together, the combined entity will have a U.S. domestic premium volume of over $800 million and total assets of more than $2 billion.

"We are looking forward to formally integrating the operations of GGRCA and CRC," said Charles D. Troiano, chairman and CEO of GGRCA. "The strategic fit of the two companies was recognized immediately. During the past few months we have been working cooperatively to position ourselves for the future by incorporating the individual characteristics and strengths of both GGRCA and CRC into the new combined organization. We are now well on our way to achieving our goal of becoming the premier broker market reinsurer in the United States."

Bard Bunaes, chairman and CEO of Constitution Re and vice chairman of GGRCA added the following comments: "This is a combination that is sure to benefit the U.S. reinsurance market. Gerling Global Re provides a global reinsurance network with a long-term commitment to the industry, and Constitution Re adds long-term client and broker relationships, excellent operating efficiencies, and an established market reputation. We at Constitution are very pleased to join the Gerling Global Re Group."

Gerling Global Re is one of the ten largest professional reinsurers in the world, and is part of the Gerling organization, an international insurance and reinsurance group with operations in 29 countries supported by total assets of over $24 billion and more than 10,000 employees.