enable it to develop its business in continental European markets.

Terra Nova said yesterday it had acquired all of the issued and outstanding shares of Paris-based Compagnie de Reassurance d'Ile de France (Corifrance) through the French subsidiary of Terra Nova Insurance Co. Ltd., the group's UK operating insurance company.

Terms were not disclosed, but the purchase price was said to be all cash, and would be immediately accretive to Terra Nova's earnings. Corifrance wrote premium volume in 1996 of FF153 million ($25 million).

Terra Nova's gross premiums written for 1996 were up more than 19 percent over the previous year to $361 million.

Corifrance chairman and managing director, M. Eric Vernhes, will continue in his present role and will also play a key role in the further development of the group's European based business.

Corifrance will maintain its distinct identity within the Terra Nova Group and, subject to overall group policy, will pursue the underwriting philosophy which has been successful so far.

Terra Nova group chairman, William O. Bailey, said: "The acquisition of Corifrance provides the group with the opportunity to hasten the development of business in continental European markets and is an excellent strategic fit with our existing businesses in the London company market, Canada, Belgium, at Lloyd's and in Bermuda.'' Terra Nova Insurance Co. deputy chairman and managing director, John Riddick, said: "I am delighted that with this acquisition we not only bring a well-established and profitable company into our group, but I am able to welcome Eric Vernhes, who brings with him his considerable skill and knowledge of international reinsurance and a professional reinsurance team, to the benefit of our group as a whole.

"I look forward to working with them. The business of Corifrance largely complements that of Terra Nova's branch in Belgium and expands the proportion of business that we derive from continental European countries, thus further improving our geographic diversity.'' Terra Nova (Bermuda) Holdings Ltd. underwrites worldwide a diverse property, casualty, automobile, marine and aviation insurance and reinsurance business through four operating subsidiaries -- Terra Nova Insurance Co. Ltd. in the UK, Terra Nova (Bermuda) Insurance Co. Ltd., Terra Nova Capital Ltd. and Octavian Syndicate Management Ltd., which manages seven Lloyd's syndicates in which the company has a participation.