Capital Re Corporation and GCR Holdings Limited form reinsurance joint venture.NEW YORK--(BUSINESS WIRE)--Nov. 19, 1996--Capital Re Corporation (Capital Re) and GCR (1) (Group Code Recording) An earlier encoding method used on magnetic tapes and Apple II and Mac 400K and 800K floppy disks. (2) (Gray Component Replacement) A method for reducing the amount of printing ink used. Holdings Limited (GCR) today announced the formation of a joint venture company, Capital Global Underwriters Limited (CGUL). CGUL, a Bermuda-domiciled 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, will primarily specialize in financial reinsurance Financial Reinsurance, also known as 'fin re', is a form of reinsurance which is focused more on capital management than on risk transfer. In the non-life segment of the insurance industry this class of transactions is often referred to as finite reinsurance. , including financial guaranty, mortgage guaranty and finite risk reinsurance. CGUL will be organized with up to $50 million of committed capital. Capital Re and Global Capital Reinsurance Limited, a wholly-owned subsidiary of GCR Holdings Limited, will each provide 50% of CGUL's initial capital. Operations will be managed and underwritten in Bermuda by Capital Global Managers, a managing agency wholly-owned by Capital Re. Michael E. Satz, chairman, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Capital Re said, "The joint venture with GCR provides Capital Re with the capability to utilize a non-consolidated, tax-advantaged vehicle to enhance profitability of Capital Re's core products and facilitate Capital Re's expansion into finite risk reinsurance. This will be accomplished in partnership with GCR, a company whose underwriting expertise and technical skills are highly complementary to those of Capital Re." Lawrence S. Doyle, President and Chief Executive Officer of GCR Holdings Limited said, "We are enthusiastic about our venture with Capital Re Corporation. This initiative will enhance our efforts to diversify GCR beyond the property catastrophe business. It also provides us the opportunity to work with the underwriters of Capital Re, whose technical underwriting of financial guaranty products meshes well with the financial reinsurance requirements of our client base." Capital Re is a NYSE-listed reinsurance holding company with aggregate statutory capital in excess of $500 million. Its principal subsidiaries are: Capital Reinsurance Company, a AAA AAA: see American Automobile Association. (Triple A) A common single-cell battery used in a myriad of electronic devices of all variety. Like its double A (AA) cousin, it provides 1.5 volts of DC power. When used in series, the voltage is multiplied. rated financial guaranty 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. ; Capital Mortgage Reinsurance Company, a AA rated mortgage guaranty reinsurer; Capital Credit Reinsurance Company Ltd., a multi-line specialty reinsurer and Capital Title Reinsurance Company, a AA-rated title reinsurer. GCR is a NASDAQ-listed reinsurance holding company with statutory capital in excess of $415 million. Its principal operating subsidiary, Global Capital Reinsurance Limited, is a Bermuda-domiciled company which provides property catastrophe, property risk excess-of-loss, property pro rata [Latin, Proportionately.] A phrase that describes a division made according to a certain rate, percentage, or share. In a Bankruptcy case, when the debtor is insolvent, creditors generally agree to accept a pro rata share of what is owed to them. , marine, energy and satellite reinsurance on a world-wide basis. CONTACT: Capital Re Corporation David A. Buzen, Executive Vice President and Chief Financial Officer Catherine C. Bailey, Director of Communications Director of Communications is a position in the private and public sectors. The Director of Communications is responsible for managing and directing an organization's internal and external communications. 212/974-0100 or GCR Holdings Limited Frederick W. Deichmann, 441/292-9415 |
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