Fairfax Financial Holdings Ltd. says that its French subsidiary, Compagnie Transcontinentale de Reassurance Holding (CTRH), has purchased Compagnie de Reassurance d’Ile-de-France (Corifrance), a French reinsurance subsidiary of Markel Corp., which was placed into runoff in November 2004.

Corifrance and its its French holding company, Terra Nova SAS (TN SAS), had consolidated total assets of 137 million euros, as at Sept. 30, 2004.

Before being placed into runoff by Markel, Corifrance wrote a small diversified mix of reinsurance business on a worldwide basis, including property, aviation, marine and credit. Corifrance had net written premiums, on of 21 million euros in 2003.

The purchase price was 44 million euros, which was determined on the basis of a discount to book value.

As part of the consideration for the purchase, CTRH received a reserve indemnity capped at the purchase price. As at September 30, 2004, Corifrance had gross claims reserves of 38 euros million.

Payment is scheduled to occur upon the earlier of the dissolution and merger of Corifrance into an affiliate of CTRH or April 7, 2005. Subject to regulatory approvals, Fairfax intends to merge Corifrance into its European runoff subsidiary, Riverstone Insurance UK.