The LaSalle Re deal clinched by Endurance Specialty Insurance could create extra jobs.

Endurance, one of the Island's newest reinsurers, has acquired the in-force business of LaSalle Re.

It means that within five months of setting up as a new reinsurer on the Island, Endurance has completed its "build-out" of its property catastrophe platforms in Bermuda.

The move could see its staff levels grow to more than 60.

Endurance, which has taken over LaSalle's building lease, was one of a wave of new insurance and reinsurance ventures to set up in Bermuda after September 11 and the ensuing void in capacity. So far as many as 74 insurance companies have incorporated here.

Endurance acquired LaSalle's in-force business from its former parent, the Trenwick Group. Endurance CEO and president Kenneth LeStrange, CEO said: "We are very pleased to have reached this agreement with Trenwick, and, in so doing, to have completed the build-out of our property catastrophe and Bermuda platforms within just five months of our founding. "This carefully considered transaction makes Endurance a powerful resource for our clients - combining the talented employees and impressive client base of LaSalle Re with Endurance's strong capital base, broad array of products, experienced management team and strong investor group."

Trenwick CEO James Billett said: "The transaction immediately provides Trenwick with greater financial flexibility and reduces significantly our exposure to the volatility and significant capital requirements inherent in the property catastrophe business."

As part of the transaction, Endurance will not take on any past liabilities from LaSalle Re. In addition, Endurance will have the right to renew existing LaSalle Re contracts as they expire. Certain historic LaSalle Re business which had previously been placed in runoff and an existing corporate investment in Lloyd's will be retained by LaSalle Re.

In 2001, LaSalle Re had $133 million of premiums in force, and as of April 1, 2002, it had approximately $60 million in net unearned premium reserves.

Endurance has agreed to pay Trenwick a ceding commission of 25 percent and additional profit sharing of 50 percent if losses do not exceed a 45 percent loss ratio. Endurance will have the right to renew LaSalle's in-force business as it expires in exchange for a 12.5 percent commission on the business renewed.