American Re's Acquisition of United National Group Terminated.Business Editors PRINCETON, N.J.--(BUSINESS WIRE)--Aug. 11, 2000 American Re Corporation has been advised that the owners of the United National Group of insurance companies ("UNG UNG Unguent (ointment, medical) UNG UNG's not GNU ") have exercised their right to terminate the purchase agreement between the two companies, due to the Pennsylvania Insurance Department's more than ten- month delay in approving American Re's acquisition of UNG. It is disappointing to have encountered the regulatory obstacles we have dealt with during the last ten months, particularly in light of the responsiveness we and our parent company, Munich Re Munich Re AG, in German Münchener Rück AG (ISIN: DE0008430026), is the world's second largest reinsurance company with over 5,000 customers in 160 countries and has its headquarters in Munich, Germany. , have shown on the issues raised, including Munich Re's participation in and financial contribution to the U.S. Government-supported German Foundation Initiative. We agree, however, that no company can remain in limbo for an extended and indefinite period, so we understand United National's decision. American Re and UNG will continue their long-term strategic alliance and it is American Re's intention to expand and strengthen its relationship with UNG as a ceding cede tr.v. ced·ed, ced·ing, cedes 1. To surrender possession of, especially by treaty. See Synonyms at relinquish. 2. company. American Re, a member of the Munich Re Group, is one of the leading writers of 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. in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Through its subsidiaries, it provides treaty and facultative facultative /fac·ul·ta·tive/ (fak´ul-ta?tiv) not obligatory; pertaining to the ability to adjust to particular circumstances or to assume a particular role. fac·ul·ta·tive adj. 1. reinsurance, insurance, and related services to insurance companies, other large businesses, government agencies, pools and other self-insurers, in the United States and abroad. It has received the highest insurance ratings from A.M. Best, Moody's and Standard & Poor's. The Munich Re Group, whose business also includes primary insurance and asset management, has a preeminent position in the global reinsurance industry. It is headed by Munich Reinsurance Company of Munich, Germany, and includes reinsurance subsidiaries, branches, service companies and liaison offices in more than 60 locations worldwide, serving insurers in more than 150 countries. |
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