Centre Solutions' Credit Enhancement Helps Lan Chile Bonds Take Flight.NEW YORK--(BUSINESS WIRE)--April 6, 1999--Centre Solutions, a member of the Zurich Financial Services Zurich Financial Services Group is a major financial services group based in Zurich, Switzerland. Global operations North America The US consumer market is served primarily by Farmers Insurance Group the third largest personal lines property & casualty insurance Group, has entered into a surety agreement to credit enhance $60 million of 7-year credit card receivable notes issued by Lan Chile in a private placement executed by Merrill Lynch Merrill Lynch & Co., Inc. (NYSE: MER TYO: 8675 ), through its subsidiaries and affiliates, provides capital markets services, investment banking and advisory services, wealth management, asset management, insurance, banking and related products and services on a global basis. . The notes have been assigned a "AA" rating by Duff & Phelps. In the event of a payment default by Lan Chile, Chile's largest domestic and international airline, Centre will pay the shortfall in scheduled principal and interest. The Lan Chile offering is one of the first structured finance transactions completed in South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. this year. This transaction is also Centre's first foray into Verb 1. foray into - enter someone else's territory and take spoils; "The pirates raided the coastal villages regularly" raid encroach upon, intrude on, obtrude upon, invade - to intrude upon, infringe, encroach on, violate; "This new colleague invades my Latin and South American credit enhanced structured finance. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. David Wasserman, Chief Executive Officer of Centre Solutions, "The transaction we have just completed with Lan Chile is indicative of how structured finance and risk management can be used to greatly enhance capital-raising transactions, particularly in the global arena." Centre Solutions, a member of Zurich Financial Services, is a full-service provider of customized insurance, 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. , structured finance and risk management programs. Centre Solutions has offices in Bermuda, Dublin, Hong Kong, London, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , San Francisco, Sydney and Zurich. The Centre Solutions group of companies is rated "A" or "Excellent" by A.M. Best Company and "AA" or "Excellent" by Standard & Poor's Corporation for its claims-paying ability. The Zurich Financial Services Group is a leading, internationally recognized provider of insurance and financial services in non-life and life insurance, reinsurance and asset management. It offers solutions in the area of financial protection and asset accumulation to customers in the personal, commercial and corporate market segments. Headquartered in Zurich, Switzerland, the Zurich Financial Services Group has offices in more than 60 countries reaching over 30 million customers and employing some 68,000 people. Based on pro-forma consolidated figures for 1997, the Group achieved gross premiums of more than US$44 billion. This amount includes insurance deposits as well as premiums from the Farmers Exchange. The pro-forma net income for the year 1997 amounted to US$2.1 billion. On June 30, 1998, the Zurich Financial Services Group had US$403 billion of pro-forma assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. of which US$239 billion represent funds managed for third party institutional and retail customers. |
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