Gen Re to Remain in Connecticut With State Loan Deal

General Reinsurance Corp. committed to remaining in Connecticut and is on track to receive a $9 million low-interest state loan to relocate within the city of Stamford.

The loan will commit Gen Re to operating in Connecticut for 10 years -- a standard clause in state-funded projects -- and to maintain an average of 820 employees through 2013, said James Watson, a spokesperson for the state Department of Economic and Community Development. The 20-year loan is at a 2% interest rate, Watson said. The loan is pending formal approval by the state Bond Commission on Oct. 30.

The deal will help Connecticut maintain a leadership role in the insurance and financial services sector, Gov. Jodi Rell said in a statement. It is an example of the targeted loans and investments the state is willing to make in order to be "the insurance capital of the world," she said.

"Gen Re had to make a decision -? stay in Stamford or relocate to Westchester County, N.Y. -? and we were not going to lose those dependable jobs and their IFS expertise without a fight," Rell said.

A holding company for global reinsurance and related operations, Gen Re employs 2,300 people in more than 50 locations. It has been based in Connecticut since 1974.

Representatives of Gen Re did not immediately return messages seeking comment.

General Reinsurance Corp., a member of the Berkshire Hathaway Insurance Group, currently has a Best's Financial Strength Rating of A++ (Superior).

Shares of Berkshire Hathaway (NYSE: BRK.A) closed at $100,000 a share on Oct. 21, down 0.29% from the previous close.