NAC RE UNIT REACHES PACT WITH WESTERN ATLANTIC

NAC RE UNIT REACHES PACT WITH WESTERN ATLANTIC

NAC Re reached an agreement in principle between its subsidiary, NAC Reinsurance Corp., and Western Atlantic Reinsurance Corp., to acquire the rights to renew Western Atlantic's book of business.

Western Atlantic, a subsidiary of Swiss Reinsurance America Corp., has about $170 million in annual gross in-force premium. NAC expects to take $60 million to $90 million of that business. There is also a referral fee of around 3.5 percent of gross premium, payable over three years, with a $2 million minimum over the period, with a diminishing amount after that."The Western Atlantic book represents a very desirable roster of clients written through premier brokers and offers an extremely attractive opportunity to expand and diversify NAC Re's property and casualty broker market treaty business," Ronald L. Bornhuetter, NAC Re's chairman and chief executive officer, said last week.

"Through this agreement with Western Atlantic, NAC Re looks forward to developing new clients and expanding its relationships with its existing clients to meet their reinsurance needs for many years to come."

NAC Re Corp. is the parent company of NAC Reinsurance Corp., which is an ''A" rated reinsurer, licensed to write reinsurance in all 50 states, the District of Columbia and Canada.

NAC Re also said that its board will make a public offering to increase its statutory capital base.