line from getting shaky if it has to make payouts in the event a major catastrophe hits.

The insurer has bought into a put option programme, called CatEPut, which will enable it to raise $100 million of equity through issuing convertible preferred shares. The put option gives the company the right to sell the shares at a pre-set price in the event LaSalle suffers substantial losses from a major catastrophe or series of large catastrophes, a press release stated.

LaSalle, as the buyer of the put, is paying a premium on the options which gives it the right to sell the shares to a subsidiary of Swiss Reinsurance Co., Allianz AG, and founding shareholders Aon Re, and CNA.

The protection CatEPut gives to LaSalle's balance sheet will allow it to continue operating in a market in which capacity will be needed after a major catastrophe. Having the money readily available will give LaSalle a head start over its competitors who would be trying to raise capital after a catastrophe.

"The CatEPut programme offers meaningful assurance to our clients that we will remain long-term players in our core property catastrophe reinsurance business and will enhance our ability to continue to generate value for our shareholders,'' chairman, president and chief executive officer Victor Blake said. "It complements our existing multi-year reinsurance programme and offers us maximum flexibility with respect to capital protection.'' LaSalle, through its subsidiary, writes specialist classes of reinsurance, including property catastrophe reinsurance.