Bermuda-based Trenwick Group Ltd. announced that it has delivered notice of exercise of its put option under a “Catastrophe Equity Securities Issuance Option Agreement” entered into with European Reinsurance Company of Zurich, a subsidiary of Swiss Re, “as a result of property losses incurred by Trenwick’s subsidiary, LaSalle Re Limited, in connection with the September 11th terrorist attacks.”
“The option entitles Trenwick to sell to European Re 550,000 convertible perpetual preferred shares at a purchase price of $100 per share, for an aggregate purchase price of $55,000,000,” said the announcement.
James F. Billett, Jr., Chairman, President and CEO stated that he was pleased to have the opportunity to “add equity to Trenwick’s balance sheet at this opportune time.”
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