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PIEDMONT MANAGEMENT ANNOUNCES TWO REINSURANCE COMPANY ACQUISITIONS

 PIEDMONT MANAGEMENT ANNOUNCES TWO REINSURANCE COMPANY ACQUISITIONS
 NEW YORK, Jan. 8 /PRNewswire/ -- Piedmont Management Company Inc. (NASDAQ-NMS: PMAN) today announced the completion of two acquisitions involving its reinsurance subsidiary.
 On Dec. 27, 1991, The Reinsurance Corporation of New York (RECO) (Piedmont's wholly owned reinsurance subsidiary) purchased the 75 percent of United Reinsurance Corporation of New York (United Re) previously owned by the Pohjola Insurance Company of Helsinki, Finland, and A. G. Belges, Brussels, Belgium (now part of the Fortis Group). RECO had been a 25 percent owner and served as underwriting manager of United Re since its formation in 1977. The purchase price was $23.2 million, which approximated 75 percent of the book value of the company.
 Robert M. DeMichele, president of Piedmont, indicated that United Re would cease underwriting operations. United Re wrote approximately $9 million of premium in 1991. Both Pohjola and A. G. Belges decided to sell their shares in view of changes in their respective business strategies relative to the U.S. reinsurance market.
 Piedmont also announced that on Dec. 18, 1991, RECO purchased a 55 percent ownership interest in Continental National Corporation, the parent of Continental National Indemnity Company (CNI) based in Cincinnati. CNI underwrites a specialized book of trucking insurance and other commercial casualty risks. RECO has had an ongoing relationship, through its policy issuing facilities, with CNI and its key principals, Robert Schneebeck, chairman, and James Phelan, president, who founded the company in 1986 along with a group of venture capital investors. The remaining 45 percent of the company is owned by Schneebeck, Phelan and their management team.
 Piedmont, through its subsidiary, RECO, made a $3 million equity investment and loaned the company $846,000 to help effect the transaction and assist in the buyout of the venture capital investors. CNI wrote approximately $17 million in net premiums in 1991 and has statutory policyholders' surplus of approximately $10 million.
 DeMichele went on to say that the purchase of United Re means the business previously written in United Re will now flow through to RECO, allowing RECO's underwriters to concentrate on underwriting on behalf of one company. As for


the investment in CNI, it represents an opportunity to work with a highly regarded insurance management team, while providing RECO access to a tightly controlled book of trucking and commercial business. Piedmont's objective is to meld together CNI's and RECO's insurance and reinsurance expertise.
 Piedmont Management Company Inc. is a financial services company whose principal subsidiaries include The Reinsurance Corporation of New York (RECO), a property and casualty reinsurer, and Lexington Management Corporation, an investment advisory and mutual fund management company.
 -0- 1/8/92
 /CONTACT: Peter Palenzona, chief financial officer of Piedmont, 212-363-4650/
 (PMAN) CO: Piedmont Management Company Inc. ST: New York IN: INS SU: TNM


GK-TS -- NY077 -- 7705 01/08/92 10:54 EST
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Publication:PR Newswire
Date:Jan 8, 1992
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