SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
October 7, 1996
CAPITAL RE CORPORATION
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(Exact name of registrant as
specified in its charter)
DELAWARE 1-10995 52-1567009
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(State or other Commission File I.R.S.
jurisdiction of Number (Employer
incorporation or Identification
organization) Number)
1325 AVENUE OF THE AMERICAS NEW YORK, NY 10019
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(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code:
(212) 974-0100
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(Former name or former address, if changed since last report)
CAPITAL RE CORPORATION
Item 5. Other Events.
On October 7, 1996, Capital Re Corporation (the "Company")
issued a press release announcing an agreement to acquire RGB
Underwriting Agencies, Ltd. A copy of the press release
is included herein as Exhibit 99.1.
EXHIBITS
Exhibit Number Description
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99.1 Press release, dated October 7, 1996
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.
CAPITAL RE CORPORATION
Date: October 9, 1996 By: /s/ ALAN S. ROSEMAN
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Alan S. Roseman
Senior Vice President
and General Counsel
Exhibit 99.1
NEWS RELEASE
Contact: Alan S. Roseman Robin Bruce-Gardner
Senior Vice President RGB Underwriting Agencies Ltd.
General Counsel 10th Floor
Catherine C. Bailey 2 Minster Court
Director of Communications Mincing Lane
212-974-0100 London EC3R 7FX
0171-283-0802
CAPITAL RE CORPORATION ANNOUNCES AGREEMENT TO ACQUIRE RGB
UNDERWRITING AGENCIES LTD.
NEW YORK, N.Y. October 7, 1996---Capital Re Corporation (NYSE:
KRE) and the shareholders of Tower Street Holdings Limited
announced today that they have signed a memorandum of
understanding for the acquisition by Capital Re of 100% of the
issued shares of Tower Street Holdings Limited, the ultimate
parent company of RGB Underwriting Agencies Ltd. RGB is a
Lloyd's managing agency and presently manages three
syndicates, non-marine syndicate 490 and two life syndicates,
1171 and 332, with capacity of over 100 million pounds
sterling. In connection with this acquisition and with the
completion of reconstruction and renewal at Lloyd's,
Capital Re will establish a corporate member at
Lloyd's to support underwriting on the managed
syndicates. Capital Re's participation in RGB and its
syndicates will provide it with access to the principal
international market for specialty insurance and reinsurance
products. RGB has an excellent reputation at Lloyd's and
is recognized as a market leader in many lines of business.
The acquisition is subject to the completion of due diligence,
Lloyd's approval, and the execution of definitive documents,
in addition to customary closing conditions. Completion of
the acquisition is expected by year end 1996.
Michael E. Satz, Chairman, President and CEO of Capital Re
said, "The acquisition of RGB is consistent with the strategic
direction of Capital Re to diversify into specialty products
in order to maintain earnings growth and target a return on
equity in the mid-teens. In partnership with RGB, we
anticipate a coordinated strategic initiative allowing the
Capital Re corporate group to more actively pursue
diversification of its specialty businesses. The opportunity
for product development and the business expansion arising
from this acquisition should produce a material and
sustainable accretion to earnings."
Peter Brotherton, Director of RGB in welcoming the
collaboration commented, "The proposed partnership with
Capital Re will provide the financial strength and stability
required for the group's development into the next millennium.
In acquiring RGB, Capital Re has not only recognized the
quality of our Underwriters, but also the unique opportunities
that exist at Lloyd's for global expansion."
Capital Re Corporation, headquartered in New York City, is the
holding company for several specialized professional
reinsurance companies, Capital Reinsurance Company, Capital
Mortgage Reinsurance Company, Capital Credit Reinsurance
Company, Ltd. and Capital Title Reinsurance Company. Capital
Reinsurance Company, rated triple-A by Standard & Poor's
Corporation and Moody's Investors Service, is the leading
reinsurer of financial guarantees of investment-grade debt
obligations. Capital Mortgage Reinsurance Company, rated AA
by Standard & Poor's Corporation, is a professional reinsurer
dedicated exclusively to serving the mortgage guaranty
insurance industry. Capital Credit Reinsurance Company, Ltd.
specializes in providing reinsurance capacity to the trade
credit insurance market and to other credit-related insurance
lines. Capital Title Reinsurance Company, rated AA- by
Standard & Poor's Corporation and Duff & Phelps, Inc., is the
first professional reinsurer dedicated exclusively to the
title insurance industry. Capital Re's total assets at June
30, 1996 reached $1.1 billion. Total stockholders' equity
stood at $448.6 million.
