New Bermuda insurer, Endurance Specialty Insurance Ltd., beat off stiff competition by at least six other insurance companies to buy La Salle, according to industry sources.

And The Royal Gazette has learned that Endurance won the contract because it agreed to take on the 20 staff at La Salle - a condition the other contenders would not agree to.

A spokesperson from Trenwick Group Ltd., that put the company up for sale three months ago, confirmed that it was important to them the buyer would take on the staff at the company.

But he would not confirm or deny the number of companies who had bid for La Salle.

"We would not comment on the procedure of the sale," he said. "But one of the primary concerns was for the company to take on as many as possible of the existing staff. It was a paramount concern in the sale."

He would not answer specific questions on the potential buyers, but said: "In most of these types of cases, approximately six companies are in the initial round."

Last week Endurance overnight became a much larger player in the property catastrophe reinsurance market when it bought up La Salle Re's book of business.

Endurance took over much of the business and most of the staff, about 20, of LaSalle Re., and Endurance's staff could grow to an much as 60 soon, according to reports last week. Endurance will not assume the Trenwick unit's existing liabilities.

LaSalle Re had $133 million of premiums in force in 2001 and had about $60 million in net unearned premium reserves as of April 1, 2002. LaSalle Re's business will be added to the $250 million in gross premiums that Endurance has written since it set up in December, said Kenneth J. LeStrange, president and chief executive officer of Endurance last week.

Endurance was formed in Hamilton, by Chicago-based Aon Corp. and Zurich, Switzerland-based Zurich Financial Services Group in the wake of the shortage of capacity following the terrorist attacks on the US on September 11. Since this date 74 new insurance companies have incorporated here.

The sale, structured as a reinsurance deal, will allow Trenwick to concentrate on non-catastrophe property/casualty reinsurance, which it had almost exclusively focused on prior to its purchase of LaSalle Re in 2000 in a more than $400 million deal.

Under terms of the deal, Endurance will purchase LaSalle Re's business through a 100 percent quota-share reinsurance arrangement effective April 1, 2002.

Endurance will pay Trenwick a 25 percent ceding commission on the business and additional profit-sharing of 50 percent if losses do not exceed a 45 percent loss ratio.

Endurance will have the right to offer renewals to LaSalle Re's cedents and will pay Trenwick a 12.5 percent commission on the business renewed for the first renewal only.

Trenwick will use LaSalle Re's $364 million in capital to repay debt and to support its operations in the United States and London, James F. Billett, chairman, president and CEO of Trenwick, said in a conference call with analysts last week.

As a group, Trenwick has about $1 billion in capital. The deal also removes a volatile book of business from Trenwick, Mr. Billett said.