announced the signing of a take-over agreement bringing the latter under the former's Zurich-American Insurance banner.

Zurich, and a trio of investors, one partially backed by Bermuda-based insurer Mid Ocean Reinsurance Company Ltd., last year vied for control of US-based Home hit hard by rising hazardous waste cleanup costs.

The trio, Cayman-based Trident Partnership LP, a mortgage banking company partially backed by Mid Ocean Re; Fund American Enterprises Holdings Inc.; and San Francisco-based Hellman & Friedman, had entered into an agreement in principle to infuse $420 million into Home but "reluctantly'' let the offer expire after Home opted for the Zurich offer.

But Home opted for the bid by the group of investors led by Zurich.

It will provide over $1 billion for Home's policyholders, and assure a 7.5 percent return on Home Holdings' investments, according to Bloomberg business news.

Risk Enterprise Management Ltd (REM), a new Zurich subsidiary, will manage the claims associated with former Home accounts as well as all other administrative aspects of the holding company, Home Holdings Inc., and its subsidiaries, according to a release from the company.

Home Holdings Inc.'s primary business was writing commercial property and casualty insurance through its subsidiary Home Insurance Co. founded in 1853.

The transaction is expected to close in second quarter 1995.

Among the terms of the agreement, Zurich will fund a tender offer by Home of $10 per share for all outstanding common shares, except for shares held by Trygg-Hansa and Zurich.

In addition, Zurich will purchase 800,000 shares of Home common stock at $7.50 a share.

The agreement also calls for Trygg-Hansa to issue eight-year warrants giving Zurich the right to buy about 12 million shares of Home's common stock at $8.50 a share.

The original trio of investors, led by Fund American, had entered into an agreement with Home on December 6.

They improved the offer on January 6 but Home, 65 percent-owned by Stockholm-based property and casualty insurer Trygg Hansa, announced the new agreement with Zurich on December 27, 1994.