in exchange for a one off premium of $275 million.

The two companies have agreed to provide a total of $800 million in environmental insurance cover over an unlimited time period for liabilities relating to the operations of Beazer Plc. in the US.

Centre Solutions and Swiss Re struck the deal with Hanson Plc, which acquired Beazer in 1991. At the time of the acquisition Beazer had responsibility for meeting potential environmental site remediation costs as part of its chemical and manufacturing businesses. When Beazer was acquired the businesses were no longer owned or operated by the company.

"This innovative programme provides Hanson with a unique combination of financing and risk transfer coverage for liabilities from discontinued operations at an attractive net cost,'' Centre Solutions chief executive officer David Wasserman said. "By removing this legacy exposure, the programme will enable Hanson's management to focus on pursuing their successful business strategy.'' Under the agreement Beazer will pay the first $100 million in remediation costs arising since January 1998. The company will also continue administration of the remediation programme.