Bermuda-based Trenwick Group Ltd. announced that it would cease underwriting its U.S. specialty program insurance business effective immediately.
Operating under the name Canterbury Financial Group Inc. and through its subsidiaries The Insurance Corporation of New York, Chartwell Insurance Company and Dakota Specialty Insurance Company, Trenwick underwrote U.S. property and casualty insurance through specialty program administrators. Trenwick will continue to administer and pay claims in connection with the insurance policies previously underwritten by the Canterbury Financial Group.
In addition, Trenwick will work with its specialty program administrators to attempt to facilitate appropriate transitions for their existing books of insurance business. Trenwick will record a charge in the fourth quarter of 2002 for the expenses it expects to incur in connection with the termination of its U.S. specialty program insurance business.
W. Marston Becker, Acting Chairman and Acting Chief Executive Officer of Trenwick, stated, “The cessation of our U.S. specialty program insurance operation is an unfortunate, but critical element of the necessary restructuring of Trenwick’s business. The reduction in premium volume from the termination of Trenwick’s U.S. specialty program insurance operation will significantly reduce Trenwick’s operating leverage and permit it to focus its financial resources on those segments of its business that we believe have the greatest potential for profit.”
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