subsidiary, Underwriters Reinsurance Co. from owners that included XL Insurance Co. Ltd.

Venton is a holding company which conducts global insurance and reinsurance business with operations here, and in London.

Underwriters Re paid cash, Alleghany stock and options valued at $190 million to acquire all of the equity of Venton from the current owners, including a subsidiary of the Trident Partnership LP, XL Insurance, Risk Capital Reinsurance Co. and members of Venton management.

Underwriters Re also assumed approximately $133 million in letter of credit obligations which support the activities of Venton's subsidiary Venton Underwriting Ltd. (VUL) as an underwriting corporate member of Lloyd's.

In addition to VUL, Underwriters Re acquired another Venton subsidiary, Lloyd's managing agency Venton Underwriting Agencies Ltd., following Lloyd's approval.

Alleghany president and CEO John J. Burns Jr. commented: "We congratulate our Underwriters Reinsurance subsidiary for their acquisition of Venton Holdings Ltd.

"Their group will not only be joined together with a first rate group of seasoned underwriters, but at the same time the acquisition significantly increases both the scale and the scope of their entire operation.'' The insurance and reinsurance business underwritten by Venton is broad-based with a well-diversified product mix of property, casualty, marine and other risks.

Its clients are located around the world, primarily in the United States, the United Kingdom, Western Europe, Canada and Australia. For 1999, Venton through its subsidiaries in London will manage 285.5 million (US $486 million) of capacity, of which VUL will provide approximately 76 percent.

Headquartered in Calabasas, California with operations in Atlanta, Chicago, Houston, Los Angeles, New York, St. Louis, Connecticut and Barbados, Underwriters Re and its affiliates provide property, casualty and marine insurance and reinsurance.

Underwriters Re focuses primarily on coverages requiring specialised underwriting expertise, such as excess and surplus lines, directors and officers liability, marine coverages and structured property treaties.

In addition, Underwriters Re reinsures a significant book of non-traditional business and writes facultative reinsurance on a programme and certificate basis.

It also writes property, casualty and marine insurance through its subsidiaries Commercial Underwriters Insurance Co., Underwriters Insurance Co.

and Newmarket Underwriters Insurance Co.

Underwriters Re and its insurance subsidiaries carry an "A (Superior)'' rating from A.M. Best Company, Inc. and a claims paying ability rating of "AA-'' from Standard & Poor's. As of June 30, 1998, the statutory surplus of Underwriters Re was $675 million, making Underwriters Re the ninth-largest domestic professional reinsurer in terms of statutory surplus, according to the Reinsurance Association of America.

In addition to the business conducted by Underwriters Re, Alleghany Corporation is engaged, through its subsidiaries Alleghany Asset Management, Inc. and World Minerals Inc., in the businesses of investment management and industrial minerals. Alleghany also conducts a steel fastener importing business through its Heads and Threads division.