ZURICH, Switzerland (AP) ? Bermuda-based Castlewood Holdings Ltd. has bought a reinsurance subsidiary of Zurich Financial Services for an undisclosed sum.

Zurich said on Friday that it sold its Turegum reinsurance unit to a subsidiary of Castlewood Holdings Ltd. because of the risk of losses associated with asbestos and other environmental risks.

Turegum?s asbestos claims have repeatedly forced Zurich Financial to increase reserves, weakening the insurer?s balance sheet.

Castlewood specialises in the management and acquisition of insurance and reinsurance companies, including companies in run-off.

In May, 2003 it bought Toa-Re Insurance Co. (UK) Ltd., a London based subsidiary of the Toa Reinsurance Co. Ltd., a large Japanese reinsurance company, for $46 million and renamed it Hillcot Re.