Gerling Global Re Signs Deal to Buy Constitution Re from Exor
Gerling Global Reinsurance Corporation of Cologne, Germany, one of the world's largest international reinsurers, announced today that it has signed a definitive agreement to acquire Constitution Re Corporation (CRC) and its subsidiaries from Exor Group. Exor had put the unit up for sale in June.
In addition, Gerling Global Re will acquire Rex Re, a Bermuda-based company. Constitution Re is 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. The transaction is expected to be completed later this year.
"As part of our worldwide strategy, the acquisition of Constitution Re strengthens our U.S. position as well as our presence in the international reinsurance marketplace," says Norbert Strohschen, chairman of the Board of Management of Gerling Global Re. "The acquisition also underlines Gerling Global Re's recent efforts to build and enhance our U.S. franchise, and will increase the total amount invested in the U.S. during the past two years to more than $1 billion."
Gerling Global Re's U.S. operations and recent investments consist of Gerling Global Reinsurance Corporation of America (GGRCA), Gerling Global Financial Products and Gerling Global Life Reinsurance Company.
Charles D. Troiano, president and CEO of GGRCA, says, "GGRCA and CRC will have a combined U.S. domestic premium volume of over $800 million and total assets of more than $2 billion. It is exciting to consider our opportunities and challenges as a leading U.S. broker reinsurer. As we integrate the operations of Constitution Re and GGRCA, we will focus on the individual characteristics and strengths of both organizations to provide superior products and services to brokers and clients."
"Becoming part of a global reinsurance network with a long-term commitment to the industry is an exciting opportunity for us as well," adds Bard Bunaes, chairman and CEO of Constitution Re. "Gerling Global Re will provide the framework and financial security to enable us to develop the new combined entity into the premier broker market reinsurer. Constitution Re adds long-term client and broker relationships, excellent operating efficiencies, and an established market reputation."