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Insurance industry

General Re Corporation Closes Investment in Colonia Konzern AG Joint Venture

Strategic Insights

— 1 min read

General Re Corporation has completed its investment in a new joint venture company, General Re-CKAG Reinsurance and Investment S.A.R.L., with Colonia Konzern AG (CKAG). The joint venture, GR-CK, will hold a significant stake in Cologne Re, a leading European reinsurer. According to Ronald E. Ferguson, chairman and chief executive officer of General Re Corporation, the closing of the transaction marks a significant milestone in the company's efforts to expand its global presence and better serve its clients worldwide.

Key Takeaways:

  • General Re Corporation has closed its investment in General Re-CKAG Reinsurance and Investment S.A.R.L. (GR-CK), a joint venture with Colonia Konzern AG (CKAG).
  • GR-CK will own 75% of the common and 30% of the preferred stock of Cologne Re, a European reinsurer.
  • The joint venture will hold cash and securities invested in GR-CK by General Re Corporation, valued at DM 902 million.
  • The annual preferred dividend paid to CKAG on its Class A shares in GR-CK is estimated to be approximately DM 36 million.
  • GR-CK will be domiciled in Luxembourg, rather than The Netherlands, as initially reported.
  • The transaction marks a significant milestone in General Re Corporation's efforts to expand its global presence and serve its clients worldwide.
  • The joint venture is expected to have a significant impact on the reinsurance market, particularly in Europe.

Statistics:

  • DM 902 million: Cash investment in GR-CK by General Re Corporation.
  • 75%: Ownership stake of GR-CK in the common stock of Cologne Re.
  • 30%: Ownership stake of GR-CK in the preferred stock of Cologne Re.
  • DM 36 million: Estimated annual preferred dividend paid to CKAG on its Class A shares in GR-CK.
  • Over 30 countries: Presence of General Reinsurance Group in more than 30 countries.
  • Early 1995: Expected filing date of pro forma consolidated financial statements with the SEC.

Sources:

  • BUSINESS WIRE - December 28, 1994
  • General Re Corporation press release
  • General Re Corporation annual report

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