Bermuda-based Allied World Assurance Company Holdings, Ltd said today that its U.S. unit has entered into an agreement to purchase Converium Insurance (North America) Inc., based in Fort Lee, N.J.
Financial terms of the transaction, which is expected to close in the first quarter of 2008, were not disclosed. Following the closing, it is anticipated the company will be renamed Allied World Reinsurance Company.
Allied World told National Underwriter that Converium Insurance NA Inc. is currently owned by Converium Reinsurance (North America) Inc., whose ultimate parent is Berkshire Hathaway Inc. The company has been in runoff since 2004 and cedes virtually all of its business to Converium Reinsurance (North America) Inc.
Converium Insurance NA is currently licensed to write insurance and reinsurance in 49 states and the District of Columbia.
Scott Carmilani, president and chief executive officer of Allied World, said the acquisition is “another important step for us in the build out of Allied World's U.S. reinsurance platform. This will strengthen our ability to service our reinsurance clients in the U.S.”
Just last month, Allied World announced a strategy to expand its U.S. business, appointing John Bender as chief operating officer. He was formerly chief underwriting officer, reinsurance casualty division, for Platinum Underwriters.
In 2004, Zurich-based Converium AG, which was purchased by SCOR this year, placed Converium Reinsurance North America in runoff, replacing it with Converium Insurance North America (CINA).
Allied World reported net income of $109 million, or $1.72 per diluted share, for the third quarter of 2007 compared with net income of $114.0 million, or $1.89 per diluted share, for the third quarter of 2006, a 4.4 percent drop.
Allied World, through its insurance subsidiaries, is a global provider of insurance and reinsurance solutions with offices in Bermuda, the United States and Europe.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
