Overseas Partners Buys Reliance Reinsurance Company

Overseas Partners Ltd. (OPL), a Bermuda reinsurer, says it has signed a definitive agreement to acquire Reliance Reinsurance Co. (Reliance Re). The purchase includes the team of up to 50 professionals and staff who formerly managed Reliance Reinsurance Corp., a subsidiary of Reliance Insurance Co. ("RIC").

OPL says this transaction does not involve the assumption of any liabilities previously underwritten by Reliance Re, RIC or any of its affiliates.

Mary Hennessy, OPL's president and chief executive officer, said, "This acquisition provides us with immediate access to proven technical underwriting, claims, and actuarial expertise and will allow us to expand our partnerships with key clients in the world's largest insurance and reinsurance market. As our new subsidiary will not have any existing liabilities, our highly experienced management team will be solely focused on providing service and innovative products to new and existing clients."

The Reliance Re staff, located in Philadelphia, specializes in property and casualty treaty, casualty facultative, and agricultural reinsurance. The team includes existing senior management and will be led by Edward Stanco. OPL says hiring of this group more than doubles the firm's existing reinsurance staff, all of whom are currently located in Bermuda.

Hennessy said, "We believe that our acquisition of Reliance Re and its team of reinsurance professionals, together with an infusion of our capital, will establish OPL as a significant player in the United States reinsurance market."

Reliance Re has the authority to write reinsurance in all 50 states and Washington, DC, as well as insurance in over 40 states. OPL says the acquisition complements its existing core business lines of accident and health, workers' compensation, aviation, financial reinsurance and property catastrophe.

Edited by Dave Willis