STAD ROTTERDAM TAKES STAKE IN SWISS-OWNED INSURER
Dutch insurer Stad Rotterdam Anno 1720
N.V. <ASRN.AS> said from July 1 it will own 20 pct of the
shares of <Europeesche Verzekering Maatschappij N.V.>, a
fully-owned unit of Swiss insurer <Union
Rueckversicherungs-Gesellschaft>.
    Stad Rotterdam chairman Lucas van Leeuwen told Reuters it
may raise its stake to a majority interest if the two companies
are found to be sufficiently compatible.
    Van Leeuwen said that due partly to the fact Europeesche
made losses in 1985 and 1986, the 20 pct stake was obtained at
below the shares' intrinsic value. He gave no precise sum.
    The Europeesche, which specialises in travel and recreation
insurance, had a premium income of 150 mln guilders in 1986.
    Stad Rotterdam's premium income in 1986 was 1.17 billion
guilders, making it the fifth largest Dutch insurer.
    Europeesche made a loss of nine mln guilders in 1985, which
narrowed to 4.5 mln guilders in 1986, van Leeuwen said.
    He said the company was on course for independent recovery
and was expected to reduce its losses further in 1987.
 REUTER
