In a surprise move, Centre Reinsurance Holdings Limited has announced that Anglo American Insurance Company will not accept any new business, and instead will be placed in run-off. There was no explanation why.

The announcement comes less than a fortnight after the President and CEO of Centre Re, Mr. Michael Palm, announced that the company would acquire Anglo American from John Head & Partners L.P., Anglo American's controlling shareholder.

Mr. Head, through Head Insurance Investors (Bermuda) L.P., had purchased Anglo American in 1990 for $117.1 million from CalFed Inc., a California savings and loan. Just prior to his announced sale of Anglo American to Centre Re, he had abandoned plans to take the company public with a $100-million Initial Public Offering (IPO) when the US market dried up.

Centre Re (Bermuda) currently provides Anglo American with aggregate excess-of-loss reinsurance on business they once wrote through the now-defunct H.S. Weavers (Underwriting Agencies line slip).

Parts of Anglo American's business will be underwritten in the future by Zurich Reinsurance (UK) Limited, a press statement said yesterday. Both the acquisition and the run-off are subject to regulatory approval.

A re-structuring plan had been announced in March that would have had Zurich Re acquire Anglo American. Mr. Palm said last month that Centre Re was evaluating various options for the management of Anglo American, and would announce final plans in due course.

A May 27 press statement reported, "It has been decided that Anglo American will not be merged into any other company in the Centre Re group, but will remain an independent entity. Centre Re's decision to assume ownership of Anglo American and responsibility for its management does not imply any commitment to provide financial support for Anglo American in excess of Anglo American's own resources.'' Mr. Palm was yesterday off the Island and unavailable for comment.