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MORRISTOWN, N.J.-Mercantile & General Reinsurance Co. of America will be merged into Toa-Re Insurance Co. of America under terms of a deal announced last week.
Toa-Re of America's parent, Tokyo-based Toa Fire & Marine Reinsurance Co. Ltd., agreed to buy M&G America's outstanding stock from its parent, Swiss Reinsurance Co., in a transaction valued at about $200 million.
The Morristown, N.J.-based reinsurance companies, which had combined premiums of $103.9 million in 1996, have operated under common management since 1982, when Toa-Re of America was created, explained William L. Munson.
Mr. Munson serves as chairman, president and chief executive officer of Toa-Re as well as president and chief operating officer of M&G America.
The anticipated price on the deal, expected to close by year end, is based on M&G America's $193.8 million book value as of Dec. 31, 1996, plus interest, less any appropriate closing adjustments, according to Mr. Munson.
Swiss Re acquired Mercantile & General Reinsurance Co. P.L.C., including M&G Re's operations in the United States, from Prudential Corp. P.L.C. last year (BI, Sept. 2, 1996).