UPDATES: ZURICH TO BUY OUT ZRC SHARES

NEW YORK-Switzerland's Zurich Insurance Group plans to buy all the outstanding shares of U.S. subsidiary Zurich Reinsurance Centre Holdings Inc. for $322.5 million and take the company off the New York Stock Exchange.

The move comes four years after ZRC's initial public offering, which established the reinsurer as a large, publicly held broker market reinsurer. After the IPO, Zurich held 43% of ZRC shares but has since increased its stake to 66%.

Under the proposal, Zurich will pay $36 per share for the about 9 million publicly held shares. ZRC shares closed at $37.75 Friday.

As sole owner of ZRC, Zurich will have a greater opportunity to widen its range of services, said Rolf Hueppi, chairman and chief executive officer.

"Most importantly, it will allow for an integrated customer approach between ZRC, focused on traditional reinsurance products, and our wholly owned subsidiary, Centre Reinsurance," he said, referring to Bermuda-based finite risk reinsurance specialist Centre Reinsurance Co.