been delayed because of a backlog at the Securities and Exchange Commission in the US.

A LaSalle Re spokesperson set a new September 30 deadline for the deal.

"We still need shareholder approval,'' said Diane Newman, investor relations manager for LaSalle Re, "that is the next big hurdle we have to overcome.

"But the backlog at the Securities and Exchange Commission has affected us.

We had originally said the merger would take place before June 30, now we are saying before September 30,'' she continued.

"We need to have final approval from the Securities and Exchange Commission to go forward.'' Trenwick and LaSalle Re last December announced plans to merge the two companies to form Trenwick Group Ltd.

Preliminary legal papers to bring about the new company, were filed last week in Bermuda.

"Our lawyers have begun to take the first steps to getting Bermuda approvals,'' Ms Newman said. "Filings have been lodged which deal with arrangements, reconstructions and amalgamations in company law.'' The merger will bring a much broader base to the Trenwick Group and it is expected that LaSalle Re will continue its operations completely intact as a subsidiary of the new Trenwick.

James Billett Jr. will continue as chairman, president and chief executive officer of Trenwick, and Guy Hengesbaugh will continue his roles of president and chief executive officer of LaSalle Re.

The Board of Directors of the new company will consist of the current 12 Trenwick directors, and four directors from the present LaSalle Re Board.

"This transaction is exciting for us since it creates a company with larger scale and stronger competitive capabilities in a consolidating global insurance/reinsurance market,'' said Trenwick chairman James Billett.

"It adds higher margin business to Trenwick's existing mix, creates a better platform to enhance shareholder returns and expands management depth,'' he continued.

"The combined enterprise will have strong presence in the three most significant insurance markets in the world: the United States, London and Bermuda.'' According to projections in December, premiums of the new Trenwick were expected to approach $1 billion.