30 West Mount Pleasant Avenue, PO Box 468, Livingston, NJ 07039-2907
Tel: (973) 994-4881 • Fax: (973) 994-4882
Email: info@ratnerassociates.com
Buzzards in the...
Westport Insurance Co.
Sightings from The Catbird Seat
~ o ~
< < < SHORT FLASHBACKS < < <
Westport Insurance Corporation is part of General Electric.
GE is one of the world's largest companies, and is rated as "Most Admired Company in America" by Fortune Magazine.
Insuring lawyers since 1972, today Westport insures more than 23,000 law firms and enjoys the privilege of having obtained more Bar endorsements nationwide than any other insurance company.
This financial strength, together with years of professional liability experience, provides Westport with the ability to offer your firm an impressive product tailored to meet your unique needs, while providing the best coverage and protection available.
In addition to its policy's excellent protection, Westport's commitment to its clients includes a pro-active program of claim prevention and effective risk management tools and techniques.
David A. Ratner Associates, Inc.
30 West Mount Pleasant Avenue, PO Box 468, Livingston, NJ 07039-2907
Tel: (973) 994-4881 • Fax: (973) 994-4882
Email: info@ratnerassociates.com
~ ~ ~
November 3, 2004
Best Lowers Outlook for Employers Re Group,
Westport, First Specialty to Negative
A.M. Best Co. announced that it has revised the rating outlook to negative from stable on the "A" (Excellent) financial strength ratings for Employers Reinsurance Corporation of Overland Park, Kan. and GE Reinsurance Corporation of Barrington, Ill., as well as Employers Re Corp. Group--First Specialty Insurance Corporation and Westport Insurance Corporation.
Concurrently, Best assigned issuer credit ratings of "a" with a negative outlook to Employers Reinsurance Corporation and GE Reinsurance Corporation.
> > > FAST FORWARD > > >
June 12, 2006
Swiss Re Completes GEIS Acquisition
Swiss Re and General Electric have announced the completion of the sale of GE's reinsurance business, GE Insurance Solutions, including Employers Reinsurance Corp. (ERC), to Swiss Re for between $7.4 billion, according to Swiss Re, or $7.8 billion, according to GE, in cash and securities plus the assumption of $1.7 billion in GEIS debt.
Swiss Re noted that the "acquisition creates the world's largest and most diversified global reinsurer." It plans to integrate GEIS operations into its own divisions over the next 18 months.
"The acquisition of GE Insurance Solutions consolidates further Swiss Re's global leadership position," stated CEO Jacques Aigrain. "We will now move swiftly to integrate GE Insurance Solutions, adding new talents to our global workforce and building on the benefits of an enlarged client base and expanded product offerings."
Swiss Re's version of the financing of the acquisition states it paid: "$6.8 billion plus closing adjustments of $0.6 billion for a total of USD 7.4 billion. Between 18 November 2005 and closing, the book value of GE Insurance Solutions further increased by $1.7 billion through cash capital contributions from General Electric and earnings which Swiss Re reimbursed to GE on closing."
GE's version states that it sold GEIS for "$7.8 billion in cash and securities plus the assumption of $1.7 billion in GE Insurance Solutions Corporation debt."
Swiss Re also noted that the new shares it issued to GE as part of the sale have an equivalent value of $2.4 billion, based on a share price of CHF 87.58 ($72.07). "GE now owns 8.9 percent of Swiss Re's share capital," said the bulletin. "As a result of the issuance of new shares to GE, the number of Swiss Re shares entitled to dividends increases by 33 300 957 shares to 358 212 933 shares. In addition, Swiss Re issued mandatory convertible instruments (MCI) for $500 million to GE. The MCI will automatically convert into Swiss Re shares in three years."
Concerning how it will integrate GEIS into Swiss Re, the Company's bulletin said only that it plans on "building on its talents, franchise and client base. Functions and teams will be merged, leading to an overall reduction of office locations as well as staff reductions in a number of locations. Through the organizational streamlining Swiss Re expects to capture cost synergies of at least $300 million per year, to be realized by the end of 2007. Overall the acquisition will be accretive to earnings already in 2007."
The integration will be a complex task. As GE's bulletin notes, GEIS "operated with 2,500 employees in 50 offices in 22 countries. The operating companies among those included in the transaction are: Employers Reinsurance Corporation, GE Frankona Reinsurance Limited (UK), GE Frankona Ruckversicherungs-Aktiengesellschaft, GE Reinsurance Corporation, Westport Insurance Corporation and First Specialty Insurance Corporation."
http://www.insurancejournal.com/news/international/2006/06/12/69370.htm
~ ~ ~
For more, GO TO > > > Nests Along Wall Street; Marsh Affinity Group Services; Professional Independent Insurance Association Brief; Vultures in the Merger Market
# # #
MORE TO COME
For now, here are some more “birds of a feather” that
you’ll also find building nests in this tree...
AIG: THE UN-AMERICAN INSURANCE GROUP
AMERICAN SAVINGS BANK: BEHIND THE BLINDS
CITIGROUP: VAMPIRES IN THE CITY
CONFESSIONS OF A WHISTLEBLOWER
A CONNECTICUT YANKEE IN KING KAMEHAMEHA’S COURT
DIRTY MONEY, DIRTY POLITICS & BISHOP ESTATE
FIRST INSURANCE COMPANY OF HAWAII
THE KAMEHAMEHA SCHOOLS PENSION PLAN
MARSH & McLENNAN: THE MARSH BIRDS
MARSH & McLENNAN’S GUY CARPENTER
NESTS OF THE INSURANCE VAMPIRES
THE PRUDENTIAL: A NEST ON SHAKY GROUND
THE SILENCE OF THE WHISTLEBLOWERS
TRANSYLVANIA TRAVELERS IN ST. PAUL
CITIGROUP: VAMPIRES IN THE CITY
VAMPIRES IN THE VESTA INSURANCE GROUP
ZEROING IN ON ZURICH FINANCIAL SERVICES
# # #
MORE OF THE CATBIRD’S SPECIAL SIGHTINGS
FAIR USE NOTICE. This site contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes.
For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.
Last Update June 7, 2007, by The Catbird