Royal & SunAlliance Completes Orion Capital Buy

Royal & SunAlliance Insurance Group plc, London, announced the completion of the acquisition and merger of Orion Capital Corporation into a wholly owned US subsidiary of Royal & SunAlliance. Completion of the transaction doubles the size of the Royal & SunAlliance US operations, the company says, making it the 21st largest U.S. property and casualty insurer. Royal & SunAlliance USA also becomes the 13th largest commercial insurer and trebles the size of its specialty business.

Robert Mendelsohn, group chief executive of Royal & SunAlliance, said from London, ``Orion's distinctive specialty franchises, and the complementary nature of the products and skills of our two companies, will allow this new enterprise to deliver high value to customers and, in turn, shareholders. The case for the combination of these companies is a compelling one that we believe both the capital and insurance markets will recognize and rightly reward.''

Terry Broderick, Royal & SunAlliance USA president, added, ``Orion has excelled at identifying customer needs, as demonstrated by the leadership of EBI Companies in workers compensation, of DPIC in professional liability, and OrionAuto in specialty nonstandard automobile insurance. This specialty expertise, together with the broader and well-established commercial and personal lines operations of Royal & SunAlliance, creates an organization that is substantially different in scope and presence, yet significantly unchanged in terms of customer focus. It's a combination that will make this new enterprise a powerful force in the marketplace.''