Conn. to Hold Hearing on PXRE Acquisition

February 19, 2008

The Connecticut Insurance Department said it will hold a public hearing later this month on the proposed acquisition of PXRE Reinsurance Co. by U.K.-based Tawa.

Tawa announced the plans to acquire the company from Bermuda-based Argo Group International Holdings Ltd. in November for $114 million in cash.

The acquisition would give Tawa its first operation in the U.S.

PXRE primarily wrote reinsurance of property, marine and aerospace risks with a focus on catastrophe-related coverage. Its operations were put into run-off in February 2006. The run-off followed a downgrade by analysts of the parent of PXRE as a result of the 2005 hurricanes in the Gulf.

The deal is subject to regulatory approval from the Connecticut Department of Insurance and is expected to close before the end of the first quarter of 2008.

The hearing is schedule for Feb. 28 at the Dept. of Insurance in Hartford.

Commenting on the proposed acquisition last November, Gilles Erulin, chief executive officer of Tawa, said that “PXRE is an important acquisition for Tawa, it fits the profile of our target portfolio very well and it demonstrates that Tawa can seize growth opportunity in non-European markets. We are confident that our ability to provide a liquid exit route for owners of run-off operations, places us well to effect further value enhancing acquisitions.”

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