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AETNA, EXECUTIVE RE INC. TO RESTRUCTURE DIRECTORS AND OFFICERS JOINT VENTURE

 SIMSBURY, Conn., July 1 /PRNewswire/ -- The Aetna Casualty and Surety Company and Executive Re Inc. (ERI) have agreed on terms for the restructuring of their partnership, Executive Risk Management Associates, which underwrites directors and officers (D&O) liability insurance issued by Aetna. The transaction is subject to the signing of definitive transaction agreements and receipt of regulatory approvals.
 Executive Risk Management Associates is a general partnership in which Aetna has a 70 percent interest and ERI has a 30 percent interest.
 In the proposed transaction, expected to be completed in the fourth quarter, Aetna will exchange its 70 percent interest in Executive Risk Management Associates for additional ERI stock, raising Aetna's stake in ERI to approximately 40 percent. ERI will then own 100 percent of Executive Risk Management Associates.
 Aetna will continue to issue D&O coverage through Executive Risk Management Associates and its existing network of independent agents and brokers and will continue to reinsure 50 percent of each risk with ERI.
 "We're delighted to be able to bring ERI and Executive Risk Management Associates together," said Roy Vander Putten, ERI's chairman, CEO and president. "We believe that the combination of talent and resources of both organizations will position us as the premier underwriter of D&O insurance. It will permit flexibility, in the context of an ongoing relationship with Aetna, to expand our product offerings. The restructuring should increase value for shareholders."
 The new structure "is a natural and positive step in the growth of this venture," said Joseph P. Kiernan, vice president of Aetna's Bond unit and a member of ERI's board of directors. "Since the formation of ERI and Executive Risk Management Associates in 1986, these organizations have grown from start-up companies with a handful of employees to among the nation's most successful writers of D&O and specialty coverages. This transaction is the best way to help Aetna, ERI and Executive Risk Management Associates continue to grow and succeed in the business and offer the best products and services to policyholders and producers."
 Executive Risk Management Associates, which provides underwriting, claims and marketing support services, wrote more than $155 million of D&O premiums for Aetna in 1992.
 -0- 7/1/93
 /CONTACT: Christine A. Sparmer, communications manager, 203-280-0412, or Stephen M. Wasdick, public relations manager, 203-273-2355, both of Aetna Casualty and Surety Company/
 (AET)


CO: Aetna Casualty and Surety Company; Executive Re Inc. ST: Connecticut IN: INS SU: JVN

MP -- NY027 -- 7608 07/01/93 10:05 EDT
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Publication:PR Newswire
Date:Jul 1, 1993
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