Bermuda-based Trenwick Group Ltd. announced on Friday that it has delivered notice of the intended exercise of a put option in a move to raise additional capital.

The company said it would exercise the put option under a Catastrophe Equity Securities Issuance Option Agreement entered into with European Reinsurance Company of Zurich, a subsidiary of Swiss Reinsurance Company ("European Re"), as a result of property losses incurred by Trenwick's worldwide property-casualty reinsurance subsidiary, LaSalle Re Limited, in connection with the September 11th terrorist attacks.

The option entitles Trenwick to sell to European Re 550,000 convertible perpetual preferred shares at a purchase price of $100 per share, for an aggregate purchase price of $55,000,000. The closing of the exercise of the put option is subject to customary terms and conditions.

James F. Billett, Jr., Chairman, president and chief executive officer, said: "We are pleased to have the ability to add equity to Trenwick's balance sheet at this opportune time."