Magazine article Risk Management

Home, Trygg-Hansa Plot Future Course

Magazine article Risk Management

Home, Trygg-Hansa Plot Future Course

Article excerpt

AmBase Corp. sold its subsidiary, The Home Insurance Co., for approximately $1 billion last February to Home Holdings Inc., a consortium of investors. The majority (60 percent) is held by the Trygg-Hansa SPP Group, Sweden's largest insurer; 20 percent by Industrial Mutual Insurance Co., Finland's second largest insurer; and 10 percent by Bermuda-based International Insurance Investors, a subsidiary of Centre Reinsurance Service (Bermuda) Ltd. Individual investors hold the remaining 10 percent.

Trygg-Hansa has total assets of $40 billion; Industrial Mutual has total assets of $883 million and reported a premium income of $235 million in 1989; The Home has total assets of $7 billion. The combined premium income between The Home and Trygg-Hansa is approximately $6.4. billion, with Trygg-Hansa contributing to about $4 billion of that total.

The change in ownership will not alter the company's strategy of underwriting larger insureds with more complex needs, says James Meenaghan, chairman, president and chief executive officer of The Home.

"Before 1986 The Home did not have a clear strategic direction," he says. "The company was underwriting small commercial business sold through independent agents with no continuity and no strategy."

Yet, Mr. Meenaghan continued, "now there is a definite move to underwrite larger insureds. As the world moves toward a global economy, The Home has been seeking an international presence. With Trygg-Hansa, we have substantially increased our international presence. …

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