Centre Solutions Bermuda Limited Sponsors Another Reinsurance Securitization.

HAMILTON, Bermuda--(BUSINESS WIRE)--Jan. 6, 1999--Centre Solutions (Bermuda) Limited (formerly known as Centre Re), a member of the Zurich Financial Services Group, announced today that it has sponsored its second securitization of reinsurance coverage. The transaction is a successor to the Trinity Re, Ltd. transaction completed in March 1998. In this transaction, as with the prior transaction, Centre Solutions (Bermuda) Limited has purchased retrocessional capacity against Florida hurricanes from capital markets investors through a special purpose reinsurer.

The special purpose reinsurer is a new entity, Trinity Re 1999, Ltd. Trinity Re 1999 has issued $56.615 MM of fixed income securities due December 31, 1999 through a Rule 144A offering completed December 31, 1998. Investors in the securities have indirectly assumed a portion of Centre Solutions (Bermuda) Limited's exposure to hurricane losses under a reinsurance contract written to cover a book of Florida residential property insurance.

According to David Wasserman, CEO of Centre Solutions worldwide, "Centre Solutions and the Zurich Financial Services Group continue to view securitization as an important strategic capability. These transactions allow Centre Solutions to develop and maintain a dialogue with investors and play an important role in the development of this asset class."

The $56.615 MM offering consisted of $5.000 MM of Class A-1 Floating Rate Defeasance Notes, paying a coupon of LIBOR plus 1.75% and rated AAA and Aaa, respectively, and $51.615 MM of Class A-2 Floating Rate Notes, paying a coupon of LIBOR plus 4.17% and rated BB and Ba3, respectively, by Fitch IBCA, Inc. and Moody's Investors Service, Inc. The Class A-1 Notes provide for full repayment of principal at a later maturity date upon a loss.

Loss of principal on the bond is triggered when Centre Solutions (Bermuda) Limited incurs losses as the direct result of a hurricane under an excess of loss reinsurance policy the company has written to a Florida residential property insurer.

Trinity Re, Ltd. introduced an innovative trigger reset mechanism that resets features of the bond following a hurricane loss. This reset feature has been incorporated into subsequent transactions by other issuers, and has been incorporated into the structure of Trinity Re 1999, Ltd. The reset mechanism limits the level of risk assumed by investors while providing some flexibility to the insurer to grow and otherwise change the underlying book of Florida residential insurance policies.

The risk analysis for the offering was provided by Risk Management Solutions, Inc., a leading provider of natural hazard risk assessment technology and services, including desktop, client-server and internet-based software applications, information and advisory services to over 350 major insurance and financial services companies worldwide. RMS has also been retained by Trinity Re 1999, Ltd. to perform the risk analysis, should it be required, for the reset mechanism.

This transaction was executed by Goldman Sachs as lead manager, with Chase Securities Inc., Donaldson, Lufkin & Jenrette Securities Corporation and Zurich Capital Markets Securities Inc. as co-managers.

Centre Solutions (Bermuda) Ltd. consulted with Centre Risk Advisors, a New York-based member of the Zurich Group. Centre Risk Advisors was formed to work on transactions that combine elements of insurance and reinsurance with the capital markets.

According to Richard Timbrell, head of Centre Risk Advisors, "Investors in Trinity Re benefited this past year from the lack of correlation this asset class has with the broader markets. While other positions were being marked down, bonds in this asset class better maintained their price."

Centre Solutions, a member of the Zurich Financial Services Group, is a full-service provider of customized insurance, reinsurance, structured finance and risk management programs. Centre Solutions has offices in Bermuda, Dublin, Hong Kong, London, New York, San Francisco, Sydney and Zurich.

Centre Solutions reported $US 2.2 billion of capital and surplus, and $US7.8 billion of total assets at year-end 1997, with total revenues of $US 2.1 billion in the year ended December 31, 1997.

The Centre group of companies is rated "A" or "Excellent" by A.M. Best Company and "AA" or "Excellent" by Standard and Poor's Corporation for its claims-paying ability.

The Zurich Financial Services Group is one of the global leaders in the financial services industry, providing its customers with products and solutions in the area of financial protection and asset accumulation. The Group is concentrating its activities in four core businesses: non-life and life insurance, reinsurance, and asset management. Headquartered in Zurich, Switzerland, Zurich Financial Services' worldwide presence builds on strong positions in its three home markets: the United States, the United Kingdom and Switzerland. With offices in some 60 countries, Zurich Financial Services reaches over 30 million customers and employs more than 68,000 people. Based on pro-forma consolidated figures for 1997, the Group achieved gross premiums of more than USD 44 billion and net income of USD 2.1 billion.

All of these securities having been sold to institutional buyers pursuant to Rule 144A, this announcement is made as a matter of record only. This announcement shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.