dollar rescue package to bring New York firm Constellation Reinsurance Company out of liquidation.

Centre Re has made the purchase through an American-based wholly-owned subsidiary.

A plan of reorganisation for Constellation, which was put forward in July, has just been approved by the Supreme Court of the State of New York.

As part of the plan, Centre Reinsurance Company of New York has reinsured Constellation on a finite risk basis providing approximately $305 million of reinsurance protection.

The finite risk reinsurance agreement provides for payment by Centre Re of outstanding losses on reinsurance contracts in force prior to the date of Constellation's original liquidation, on February 24, 1987.

Mr. David L. Wasserman, president and CEO of Centre Reinsurance Company of New York, said: "It is detrimental to the insurance market place and to policyholders when an insurance company goes into liquidation.

"We have crafted a unique programme to provide for the run-off of Constellation's liabilities and, as far as we are aware, for the first time bring a company out of liquidation.

"We think this concept should be of great interest and may have applicability in other situations for which Constellation will serve as a model programme.'' Ms Carol A. Rennie, a former vice president of Centre Re, has been named president and CEO of Constellation.

Ms Rennie said Constellation was in the process of providing all current claimants with information on how claims will be processed. The company will start paying claims in August, 1993.

Centre Re, `AA' rated by Standard and Poor's rating agency, had $2.99 billion in assets and $360 million in capital and surplus at 1991 year-end.

Centre Re is a majority-owned subsidiary and member of the Zurich Insurance Group.