Capital Re Corporation Announces Confirmation of ACE Limited Agreement to Invest $75 Million.NEW YORK--(BUSINESS WIRE)--March 17, 1999--(NYSE NYSE See: New York Stock Exchange :KRE KRE Kauffman Racing Equipment KRE Kuwait Real Estate (bank) KRE Keffalas Real Estate, Inc KRE Key Results Expected KRE Karl Real Estate KRE Kernel Rules Enforcement KRE Korea Research Environment ) Capital Re Corporation today announced that ACE Bermuda Insurance, Ltd., a subsidiary of ACE Limited, has confirmed its agreement to invest $75 million in Capital Re through the purchase of common stock. On February 23, 1999, Capital Re announced that the ACE Group had agreed to invest $75 million in Capital Re Corporation. A condition to the closing of the investment was the affirmation of Capital Reinsurance's triple-A financial strength rating from Moody's Investors Service Moody's Investors Service A leading global credit rating, research and risk analysis firm. Moody's Investors Service A leading firm engaged in credit rating, risk analysis, and research of fixed-income securities and their issuers. . On March 10, 1999, Capital 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 was assigned a Aa2 rating by Moody's. Following that rating action, Capital Re and ACE entered into discussions that have resulted in a confirmation of the Agreement incorporating the following modifications: (a) the purchase price will be the lower of (i) fully diluted GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). book value per share at December 31, 1998 ($18.87 per share) or (ii) the average of the five highest consecutive market closing prices of Capital Re's common stock from March 12, 1999 through April 15, 1999, (b) upon completion, ACE will be entitled to designate two directors to Capital Re's Board of Directors and (c) the Agreement does not restrict ACE from acquiring any additional KRE shares through open market or private purchases. The other terms of the agreement remain as previously disclosed. Capital Re is an insurance holding company for a group of reinsurance companies that provide value-added reinsurance products in several specialty insurance markets. The Company's two principal divisions, financial guaranty As a verb, to agree to be responsible for the payment of another's debt or the performance of another's duty, liability, or obligation if that person does not perform as he or she is legally obligated to do; to assume the responsibility of a guarantor; to warrant. and financial risks, provide innovative solutions to problems of risk and financial management in the form of municipal and non-municipal financial guaranty reinsurance, mortgage guaranty reinsurance, trade credit reinsurance, title reinsurance and integrated financial solutions. |
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