Converium has announced it has signed a definitive agreement to sell its North American operations to National Indemnity Company, a Berkshire Hathaway company, for £295 million comprised of £95 million in cash and £00 million in assumption of debt. Converium said it has not provided any guarantee or indemnity in respect of the reserves of the North American operations. The transaction is subject to regulatory approvals and customary closing conditions.

Inga Beale, Converium's chief executive officer, said: "With this transaction we have successfully delivered on our promise to achieve finality regarding Converium's US operations through a clean-cut sale. We can now fully concentrate on building Converium's future, with our business strategy focused on markets outside the US."

Beale continued: "I would like to thank the North American team for an excellent job in running-off and commuting a major portion of Converium's North American liabilities prior to today's announcement. Our North American colleagues have exceeded expectations both in terms of the pace and the profitability of our run-off operations."

Upon the closing of the sale, Converium will reduce its exposure significantly as National Indemnity Company will assume all of the North American operations' reinsurance liabilities (U$1.06 billion as of June 30th 2006) as well as $200 million of debt issued by Converium Holdings (North America) Inc. Converium estimates that the sale will result in a decrease in shareholders' equity of $135 million.

Paolo De Martin, Converium's chief financial officer, said: "Even after adjusting the June 30th 2006 shareholders' equity to $1.66 billion to account for the sale, we maintain a strong financial position, while further de-risking our balance sheet. The clean-cut agreement to sell our North American operations meets a crucial condition for an improved financial strength rating."

Converium will provide further details on the transaction on November 7th 2006, when the Company reports on the financial results for the third quarter of 2006.