ACE Limited signs agreement for acquisition of Ockham Worldwide.HAMILTON, Bermuda--(BUSINESS WIRE)--Nov. 7, 1996---ACE Limited (NYSE NYSE See: New York Stock Exchange :ACL See access control list. 1. ACL - Access Control List. 2. ACL - Association for Computational Linguistics. 3. ACL - A Coroutine Language. A Pascal-based implementation of coroutines. ["Coroutines", C.D. ) announces that contracts have been entered into for its acquisition of Ockham Worldwide Holdings PLC, ("Worldwide") the subsidiary of Ockham Holdings PLC ("Ockham") which owns two Lloyd's of London Not to be confused with Lloyds Bank or Lloyd's Register. Lloyd's of London is a British insurance market. It serves as a meeting place where multiple financial backers or “members”, whether individuals (traditionally known as managing agencies. This follows the initial announcement of the proposed transaction on Sept. 25, 1996. The acquisition is conditional on final approval by Lloyd's and by Ockham's shareholders and on other customary closing conditions. A circular containing details of the transaction and a notice of meeting for Nov. 25, 1996 has been dispatched by Ockham to its shareholders today. Completion of the transaction is anticipated to take place prior to the end of November. Worldwide's two managing agencies are its aviation agency, which presently manages syndicates 960, 545, 925 and 998, and its non-marine agency which manages syndicates 122, 204 and 219. Together the syndicates to be transferred have a total underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. capacity in 1996 of 349 million pounds sterling. Worldwide's life syndicate 429 is not to be acquired by ACE. As part of the transaction ACE has, subject to certain conditions, committed to provide funds at Lloyd's of up to 50 million pounds sterling to support underwriting by Worldwide syndicates in 1997 and subsequent years. Total consideration for the purchase is 19.5 million pounds sterling payable as 3 million pounds sterling in cash, 13.5 million pounds sterling in interest bearing cash collateralised loan notes and 3 million pounds sterling in interest bearing loan notes guaranteed by A.C.E. Insurance Company, Ltd. The right to profit commission for the 1994 and 1995 years of account is being retained by Ockham. In addition, to the extent that the actual 1996 profit commission, net of tax, differs from 3 million pounds sterling, the total consideration will be adjusted by the amount of the difference. A.C.E. Insurance Company, Ltd. will also procure To cause something to happen; to find and obtain something or someone. Procure refers to commencing a proceeding; bringing about a result; persuading, inducing, or causing a person to do a particular act; obtaining possession or control over an item; or making a person the payment to Worldwide employees of 2 million pounds sterling, net of tax, in the form of a loyalty bonus based on their continuing employment. Brian Duperreault, chairman, president and chief executive officer of ACE Limited said: "We are very pleased indeed to welcome the Worldwide agencies to the ACE group of companies. This acquisition further strengthens our involvement in, and commitment to, the Lloyd's market. ACE believes that the special nature of Lloyd's and its potential lies in the collective strength of its participants; we plan to play our full role in developing new market opportunities and ensuring the continuation of Lloyd's strong revival." Leslie Goodman, chief executive of ACE's insurance operations at Lloyd's stated: "We are delighted to be joining forces with the Worldwide team. We have a great deal of respect for them and for their business capabilities. Our cultures and aspirations aspirations npl → aspiraciones fpl (= ambition); ambición f aspirations npl (= hopes, ambition) → aspirations fpl are very similar and this could not augur augur: see omen. better for the future of our combined businesses at Lloyd's." Roger Field, director of Worldwide and underwriter underwriter n. a company or person which/who underwrites an insurance policy, issue of corporate securities, business, or project. (See: underwrite) UNDERWRITER, insurances. One who signs a policy of insurance, by which he becomes an insurer. of syndicate 204 said: "My colleagues and I believe that this transaction will be much to the benefit of our managed syndicates, their customers and our staff. In the transition to the new Lloyd's it will provide us with the permanent capital necessary for the stability of our syndicates and presents a superb opportunity to maximise the business opportunities now open to us." The ACE group of companies specializes in catastrophe insurance for a diverse group of international clients. ACE Limited's Bermuda subsidiaries are leading providers of high level excess and directors and officers liability insurance Directors and Officers Liability Insurance is insurance payable to the directors and officers of a company to cover damages or defence costs in the event they are sued for wrongful acts while they were with that company. , and also provide satellite, aviation, excess property and financial lines coverages. In addition, ACE owns a majority interest in Methuen Group Limited and provides corporate capital to Lloyd's syndicates managed by Methuen's managing agency. These syndicates have a total underwriting capacity of 366 million pounds sterling in 1996. Effective July 1, 1996, ACE acquired Tempest Reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. Company Limited, a property catastrophe reinsurer re·in·sure tr.v. re·in·sured, re·in·sur·ing, re·in·sures To insure again, especially by transferring all or part of the risk in a contract to a new contract with another insurance company. based in Bermuda. CONTACT: ACE Limited, Bermuda Brian Duperreault, 001-441-295-5200 or ACE UK Limited, London Leslie Goodman, 011-44171-621-1755 ` or Investor Contact: ACE Limited Helen M. Wilson, Investor Relations Investor relations The process by which the corporation communicates with its investors. 441/299-9283 |
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