UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-K
(Mark One)
|X| ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
    ACT OF 1934 [FEE REQUIRED] For the fiscal year ended December 31, 2001.

                                       OR

|_| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
    ACT OF 1934 [NO FEE REQUIRED]
    For the transition period                        to                       .
                               ----------------------    ----------------------

                         Commission file number 0-31967

                          TRENWICK AMERICA CORPORATION
             (Exact name of registrant as specified in its charter)

                 Delaware                              06-1087672
    (State or other jurisdiction of                  (I.R.S. Employer
     incorporation or organization)                Identification No.)

                One Canterbury Green, Stamford, Connecticut 06901
               (Address of principal executive offices)   (Zip Code)

        Registrant's telephone number, including area code: 203-353-5500

        Securities registered pursuant to Section 12(b) of the Act: None

        Securities registered pursuant to Section 12(g) of the Act: None

     Indicate  by check mark  whether the  registrant  (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days. Yes |X| No |_|

     Indicate by check mark if disclosure of delinquent  filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's  knowledge,  in definitive proxy or information  statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K |X|

     There was no voting stock held by non-affiliates of the registrant on March
14, 2002.

     The number of shares  outstanding of each of the issuer's classes of common
stock as of the close of the period covered by this report:

                Class                       Outstanding at March 14, 2002
                -----                       -----------------------------
    Common Stock, $1.00 par value                       100

The registrant  meets the  conditions set forth in General  Instruction I (1)(a)
and (b) of Form 10-K and is  therefore  filing  this  Form  10-K in the  reduced
disclosure format.


<PAGE>


                          TRENWICK AMERICA CORPORATION

                                Table of Contents

<TABLE>
<CAPTION>
                                                                                      Page
Item                                                                                 Number
----                                                                                 ------
                                    PART I
<S>                                                                                     <C>
 1.  Business  ......................................................................   1
 2.  Properties  ....................................................................   3
 3.  Legal Proceedings  .............................................................   3
 4.  Submission of Matters to a Vote of Security Holders  ...........................   3

                                   PART II

 5.  Market for the Corporation's Common Stock and Related Stockholder Matters  .....   3
 6.  Selected Financial Data  .......................................................   4
 7.  Management's Discussion and Analysis of Financial Condition and
     Results of Operation  ..........................................................   4
 7a. Quantitative and Qualitative Disclosures About Market Risk......................  15
 8.  Financial Statements and Supplementary Data  ...................................  15
 9.  Changes in and Disagreements with Accountants on Accounting and
     Financial Disclosure  ..........................................................  15

                                  PART III

10.  Directors and Executive Officers  ..............................................  15
11.  Executive Compensation  ........................................................  15
12.  Security Ownership of Certain Beneficial Owners and Management  ................  15
13.  Certain Relationships and Related Transactions  ................................  15

                                   PART IV

14.  Exhibits, Financial Statement Schedules and Reports on Form 8-K ................. 15
</TABLE>


                                       i
<PAGE>


                                     PART I
Item 1.  Business

Trenwick America Corporation, a Delaware corporation, was formed in 1983 and in
1985 became a wholly-owned direct subsidiary of Trenwick Group Inc., the
ultimate controlling entity, for the purposes of serving as a United States
holding company.

On September 27, 2000, Trenwick Group Ltd., a newly formed Bermuda holding
company, issued common shares to acquire Trenwick Group Inc. and another
publicly held Bermuda company, LaSalle Re Holdings Limited, and the minority
interest in LaSalle Re Limited, a Bermuda subsidiary of LaSalle Re Holdings
Limited. Trenwick Group Inc. then distributed the shares received from Trenwick
Group Ltd. to its shareholders in a liquidating distribution. As a part of the
transaction, Trenwick Group Inc. completed a concurrent internal reorganization
of its subsidiary companies in which substantially all of Trenwick Group Inc.'s
assets and liabilities were transferred from Trenwick Group Inc. to a
subsidiary, which then merged with and into Trenwick America Corporation, with
Trenwick America Corporation as the surviving corporation. The result of the
restructuring was that Trenwick America Corporation became the intermediate
holding company for Trenwick Group Ltd.'s United States subsidiaries. This
abbreviated Annual Report on Form 10-K is required as a result of debt assumed
by Trenwick America Corporation in connection with the restructuring.

Each of Trenwick America Corporation's operating insurance company subsidiaries
is rated "A-" (Excellent) by A.M. Best Company and has been assigned an A-
financial strength rating by Standard & Poor's. These ratings are based upon
factors that may be of concern to policy or contract holders, agents and
intermediaries, but may not reflect the considerations applicable to an equity
investment in a reinsurance or insurance company. A change in any such rating is
at the discretion of the respective rating agencies.

Trenwick America Corporation conducts its specialty insurance and reinsurance
business in the following two business segments:

o    treaty reinsurance; and

o    specialty program insurance.

Trenwick America Corporation operates through the following two principal
operating platforms:

o    Trenwick America Reinsurance Corporation, which is located in Stamford
     Connecticut, underwrites treaty reinsurance on United States property and
     casualty risks, including United States reinsurance business previously
     written by its subsidiary Chartwell Insurance Company (formerly Chartwell
     Reinsurance Company); and

o    Canterbury Financial Group Inc., which is located in Stamford, Connecticut,
     underwrites specialty insurance in the United States through its operating
     subsidiaries, Chartwell Insurance Company, The Insurance Corporation of New
     York and Dakota Specialty Insurance Company.


                                       1
<PAGE>


Trenwick America Corporation's gross and net premium writings by business
segment for 2001, 2000 and 1999 are as follows.

<TABLE>
<CAPTION>
                                           2001                2000                1999
                                    ------------------  ------------------  ------------------
                                        (expressed in thousands of United States dollars)
<S>                                           <C>                 <C>                 <C>
Gross Premiums Written
Treaty reinsurance                            $350,134            $338,794            $210,921
Specialty program insurance                    291,433             187,545              38,088
                                    ------------------  ------------------  ------------------
   Total                                      $641,567            $526,339            $249,009
                                    ==================  ==================  ==================

Net Premiums Written

Treaty reinsurance                            $331,699            $251,284            $165,744
Specialty program insurance                     99,708              54,028               5,641
                                    ------------------  ------------------  ------------------
   Total                                      $431,407            $305,312            $171,385
                                    ==================  ==================  ==================
</TABLE>

For additional financial information regarding Trenwick America Corporation's
business segments, see note 3 to Trenwick America Corporation's consolidated
financial statements.

Treaty Reinsurance

Trenwick America Corporation underwrites United States treaty reinsurance
through its subsidiary, Trenwick America Reinsurance Corporation. This segment
generally obtains all of its business through brokers and reinsurance
intermediaries which seek its participation on reinsurance being placed for
their customers. In underwriting reinsurance, Trenwick America Reinsurance
Corporation does not target types of clients, classes of business or types of
reinsurance. Rather, it selects transactions based upon the quality of the
reinsured, the attractiveness of the reinsured's insurance rates and policy
conditions and the adequacy of the proposed reinsurance terms.

Trenwick America Reinsurance Corporation's commitment is currently limited to
$3.0 million per contract on casualty treaty business and $2.5 million on
property business. Larger commitments are subject to Trenwick America
Reinsurance Corporation's underwriting committee referral process.

The major lines of reinsurance currently underwritten by Trenwick America
Reinsurance Corporation are accident and health, property, errors and omissions,
environmental liability and general liability. Together these lines accounted
for an aggregate of at least 65% of its net premiums written in each of 2001,
2000 and 1999. Trenwick America Reinsurance Corporation also underwrites medical
malpractice, workers' compensation, products liability and automobile liability
lines of reinsurance. Premiums in 2001, 2000 and the fourth quarter of 1999
include business previously underwritten by Chartwell Insurance Company. This
business comprised similar lines of business underwritten by Trenwick America
Reinsurance Corporation.

Three ceding companies generated a majority of the treaty reinsurance business
for Trenwick America Reinsurance Corporation, accounting for 22%, 31%, and 25%
of this segment's gross premiums written in 2001, 2000 and 1999, respectively.
During 2001, Travelers Group, Avemco Group and American International Group
accounted for 9%, 7% and 6%, respectively, of the segment's gross premiums
written. Trenwick America Reinsurance Corporation does not believe that the loss
of these accounts would have a long-term material adverse effect on the results
and operations of its treaty reinsurance business because of its competitive
position within the reinsurance market and the availability of business from
other brokers and ceding companies. Further, Trenwick America Reinsurance
Corporation believes that it would continue to underwrite new business to
replace the accounts.


                                       2
<PAGE>


Specialty Program Insurance

Specialty program insurance, written through Canterbury Financial Group Inc.,
develops insurance programs in the United States through specialty production
sources with a focus on a specific line or lines of business, with a limited
geographic emphasis, and where the program administrator's compensation is
adjusted based on the underwriting results of the business. Canterbury Financial
Group Inc. evaluates each business relationship based upon the underwriting
experience and operational expertise of the production source and periodically
performs underwriting, claims and operational audits of each of its production
sources.

During the 2001 calendar year, the specialty program insurance segment
underwrote approximately 68% of its gross premiums through four managing general
agents, of which Florida Intracoastal Underwriters accounted for 27%, HDR
Insurance Services accounted for 16%, Inter-Reco accounted for 14% and Risk
Control Services accounted for 11%. No other managing general agent accounted
for more than 10% of Canterbury Financial Group Inc.'s gross insurance premiums
written for such period.

In order to reduce the potential adverse effect arising from the termination of
any specific business relationship, Canterbury Financial Group Inc. continues to
seek to establish and develop relationships with a large number of managing
general agents. While management believes that its relationships with its
managing general agents are satisfactory, the termination of all or a
substantial number of these relationships could have a material adverse effect
on the business and operations of the specialty program insurance segment.

Item 2.  Properties

Trenwick America Corporation's operations are located in approximately 46,000
total square feet of leased office space at Stamford, Connecticut. Management
believes Trenwick America Corporation's current office space is adequate for its
needs.

Item 3.  Legal Proceedings

Trenwick America Corporation is party to various legal proceedings generally
arising in the normal course of its business. Trenwick America Corporation does
not believe that the eventual outcome of any such proceeding will have a
material effect on its financial condition or business. Trenwick America
Corporation's subsidiaries are regularly engaged in the investigation and the
defense of claims arising out of the conduct of their business. Pursuant to
Trenwick America Corporation's insurance and reinsurance arrangements, disputes
are generally required to be finally settled by arbitration.

Item 4.  Submission of Matters to a Vote of Security Holders

No matters were submitted to a vote of shareholders of Trenwick America
Corporation during the fourth quarter of 2001.

                                     PART II

Item 5.  Market for Corporation's Common Stock and Related Stockholder Matters

There is no established public trading market for Trenwick America Corporation's
stock. All of the outstanding shares of Trenwick America Corporation's common
stock are owned by Trenwick (Barbados) Ltd., which in turn is a wholly-owned
subsidiary of Trenwick Group Ltd.


                                       3
<PAGE>


Item 6.  Selected Financial Data

Information required by Item 6 has been omitted because Trenwick America
Corporation meets the conditions set forth in General Instruction I (1)(a) and
(b) of Form 10-K and is therefore filing this Annual Report on Form 10-K in the
reduced disclosure format.

Item 7.  Management's Discussion and Analysis of Financial Condition and Results
         of Operations

The following discussion highlights material factors affecting Trenwick America
Corporation's results of operations for the years ended December 31, 2001 and
2000. This discussion and analysis should be read in conjunction with the
consolidated financial statements and notes thereto of Trenwick America
Corporation for the years ended December 31, 2001, 2000 and 1999, contained in
this Annual Report on Form 10-K. Trenwick America Corporation meets the
conditions set forth in General Instruction I (1)(a) and (b) of Form 10-K and is
therefore omitting certain information otherwise required by Item 7.

Trenwick America Corporation discloses operating and non-operating income to
enable the reader to understand how management evaluates Trenwick America
Corporation's results of operations. These disclosures are not defined under
accounting principles generally accepted in the United States of America;
accordingly the use of these disclosures may not be comparable to other
registrants.

Overview

Trenwick America Corporation is a Delaware holding company headquartered in
Stamford, Connecticut whose principal subsidiaries underwrite specialty
insurance and reinsurance.

Trenwick America Corporation conducts its specialty insurance and reinsurance
business in the United States through the following two business segments:

o    Treaty reinsurance; and

o    Specialty program insurance.

Trenwick America Corporation operates through the following two principal
operating platforms:

o    Trenwick America Reinsurance Corporation, which is located in Stamford,
     Connecticut, underwrites treaty reinsurance on United States property and
     casualty risks, including United States reinsurance business previously
     written by its subsidiary Chartwell Insurance Company (formerly Chartwell
     Reinsurance Company); and

o    Canterbury Financial Group Inc., which is located in Stamford, Connecticut,
     underwrites specialty insurance in the United States through its operating
     subsidiaries, The Insurance Corporation of New York and Dakota Specialty
     Insurance Company.

All of Trenwick America Corporation's principal operating subsidiaries are rated
A- (Excellent) by A.M. Best Company and have been assigned a financial strength
rating of A- by Standard and Poor's. These ratings are based upon factors that
may be of concern to policy or contract holders, agents and intermediaries, but
may not reflect the considerations applicable to an equity investment in a
reinsurance or insurance company. A change in any such rating is at the
discretion of the respective rating agencies.


                                       4
<PAGE>


Results of Operations - Years Ended December 31, 2001 and 2000
(monetary amounts in tables expressed in thousands of United States dollars)

<TABLE>
<CAPTION>
                                                            2001                2000               Change
                                                          --------            --------             -------
<S>                                                       <C>                 <C>                  <C>
Underwriting loss                                         $(66,303)           $(78,962)            $12,659
Net investment income                                        68,041              66,601              1,440
Interest expense and subsidiary preferred
  share dividends                                          (31,336)            (35,769)              4,433
General and administrative expenses                         (4,074)            (19,131)             15,057
Other income, net                                             2,819               2,823                (4)
                                                          --------            --------             -------
Pretax operating loss                                      (30,853)            (64,438)             33,585
Applicable income tax benefit                              (13,473)            (24,257)             10,784
                                                          --------            --------             -------
Operating loss                                             (17,380)            (40,181)             22,801
Net realized investment gains (losses), net o
  income taxes                                              (1,213)               4,399            (5,612)
Foreign currency losses, net of income taxes                  (932)             (1,190)                258
                                                          --------            --------             -------
Net loss                                                  $(19,525)           $(36,972)            $17,447
                                                          ========            ========             =======
</TABLE>

The operating loss of $17.4 million in 2001 represented a $22.8 million decrease
from the operating loss of $40.2 million in 2000. The decrease in operating loss
was principally the result of a modest improvement in underwriting results in
the U.S. treaty reinsurance business and a reduction in general and
administrative expenses. General and administrative expenses for 2000 included
expenses assumed by Trenwick Group Ltd. subsequent to the Trenwick/LaSalle
business combination. The decrease in net loss of 2001 of $17.5 million compared
to the 2000 loss was the result of the improvement in underwriting results and
decrease in general and administrative expenses noted above, offset in part by a
decrease in realized investment gains of $5.6 million.

Underwriting Income (Loss)

<TABLE>
<CAPTION>
                                                       2001                 2000                Change
                                                ---------------      ---------------      ----------------
<S>                                                    <C>                  <C>                    <C>
Net premiums earned                                    $380,288             $310,791               $69,497
                                                ---------------      ---------------      ----------------

Claims and claims expenses incurred                    (305,488)            (276,043)              (29,445)
Acquisition costs and underwriting expenses            (141,103)            (113,710)              (27,393)
                                                ---------------      ---------------      ----------------
Total expenses                                         (446,591)            (389,753)              (56,838)
                                                ---------------      ---------------      ----------------
Net underwriting loss                                  $(66,303)            $(78,962)               $12,659
                                                ===============      ===============      ================

Loss ratio                                                 80.3%                88.8%                  8.5%
Expense ratio                                              37.1%                36.6%                (0.5)%
Combined ratio                                            117.4%               125.4%                 8.09%
</TABLE>

The underwriting loss of $66.3 million incurred in 2001 represented a $12.7
million decrease compared to the underwriting loss of $79.0 million in 2000. The
decrease in the net underwriting loss in 2001 resulted from an improvement in
the current year results of both the reinsurance and specialty insurance
businesses. The effect of this improvement was offset in part by additional
reserve strengthening in both businesses which is further discussed on page 6
under the caption "Claims and Claims Expenses."

The improvement in the combined ratio in 2001 compared to 2000 resulted from
less adverse development on prior years' reserves.


                                       5
<PAGE>


Premiums Written

Gross premiums written for 2001 were $641.6 million compared to $526.3 million
for 2000, an increase of $115.2 million or 21.9%. Details of gross premiums
written are provided below.

<TABLE>
<CAPTION>
                                           2001                2000              Change
                                   ---------------     ---------------     ---------------
<S>                                       <C>                 <C>                  <C>
Treaty reinsurance                        $350,134            $338,794             $11,340
Specialty insurance                        291,433             187,545             103,888
                                   ---------------     ---------------     ---------------
Total                                     $641,567            $526,339            $115,228
                                   ===============     ===============     ===============
</TABLE>

Treaty reinsurance and specialty insurance gross premiums written increased from
$338.8 million and $187.5 million, respectively, for 2000, to $350.1 million,
and $291.4 million, respectively, for 2001. The modest increase in gross
premiums written for treaty reinsurance was due primarily to new business,
offset by the non-renewal of business written in both Trenwick America
Reinsurance Corporation and Chartwell Insurance Company. In 2001, treaty
reinsurance includes $34.6 million in gross premiums previously underwritten by
Chartwell Insurance Company compared to $128.9 million in 2000. Approximately
$52.5 million of the gross premiums written in 2000 was fronted business. The
increase in gross premiums written for specialty insurance was due to an
increase in the number of programs underwritten and growth in business in
existing programs.

Premiums Earned
<TABLE>
<CAPTION>
                                                           2001                  2000              Change
                                                   ---------------       --------------      --------------
<S>                                                       <C>                  <C>                 <C>
Gross premiums written                                    $641,567             $526,339            $115,228
Change in gross unearned premiums                          (69,638)              (8,004)            (61,634)
                                                   ---------------       --------------      --------------
Gross premiums earned                                      571,929              518,335              53,594
                                                   ---------------       --------------      --------------

Gross premiums ceded                                      (210,160)            (221,027)             10,867
Change in gross unearned premiums ceded                     18,519               13,483               5,036
                                                   ---------------       --------------      --------------
Ceded premiums earned                                     (191,641)            (207,544)             15,903
                                                   ---------------       --------------      --------------
Net premiums earned                                       $380,288             $310,791             $69,497
                                                   ===============       ==============      ==============
</TABLE>

A majority of gross premiums ceded in both 2001 and 2000 relates to the
specialty insurance business, which cedes a greater portion of its business
written than the treaty reinsurance business. The increase in gross premiums
ceded in 2001 compared to 2000 was offset by a decrease in gross premiums ceded
by treaty reinsurance relating to fronted business previously underwritten by
Chartwell Insurance Company which was discontinued during 2000.

Net premiums earned for 2001 were $380.3 million compared to $310.8 million for
2000. The increase in net premiums earned is commensurate with the increase in
net premiums written.

Claims and Claims Expenses

Included in claims and claims expenses in 2001 and 2000 were prior year reserve
additions of $22.4 million and $32.5 million, respectively. In 2001, prior year
treaty reinsurance reserves were increased by $29.4 million, principally
relating to liability business and $11.5 million related to prior participation
in the Excess and Casualty Reinsurance Association Pool. Similarly, in 2001
prior year specialty insurance reserves were increased by $13.9 million,
principally relating to a discontinued program. In 2000, prior year reserve
increases were $39.8 million on treaty reinsurance business and $(7.3) million
on specialty insurance business. Excluding amounts relating to increases in
prior year reserves, claims and claims expenses increased from $251.1 million in
2000 to $292.9 million in 2001, or $41.8 million. This increase is commensurate
with the increase in business underwritten in 2001 compared to 2000. The


                                       6
<PAGE>


claims and claims expenses in 2001 include $4.0 million incurred as a result of
the September 11th terrorist attacks.

Policy Acquisition Costs and Underwriting Expenses
<TABLE>
<CAPTION>
                                                                    2001             2000            Change
                                                               ------------     ------------     ------------
<S>                                                                <C>              <C>               <C>
Policy acquisition costs                                           $122,213         $ 92,980          $29,233
Underwriting expenses                                                18,890           20,730           (1,840)
                                                               ------------     ------------     ------------
Total policy acquisition costs and underwriting expenses           $141,103         $113,710          $27,393
                                                               ============     ============     ============

Expense ratio                                                         37.1%            36.6%             0.5%
                                                               ============     ============     ============
</TABLE>

Total underwriting expenses, comprising policy acquisition costs and
underwriting expenses, for the 2001 year increased by $27.4 compared to total
underwriting expenses for 2000. The increase in total underwriting expenses in
2001 was commensurate with the increase in premium writings. Total underwriting
expenses as a percentage of net premiums earned were 37.1% for 2001 a modest
increase compared to 2000.

Net Investment Income
<TABLE>
<CAPTION>
                                           2001                 2000               Change
                                  ----------------      ---------------      --------------
<S>                                     <C>                  <C>                   <C>
Average invested assets                 $1,204,605           $1,284,027            $(79,422)
Average annualized yields                     6.8%                 6.3%                0.5%
Investment income                           82,156               81,506                 650
Investment expenses                        (14,115)             (14,905)                790
                                  ----------------      ---------------      --------------
Net investment income                      $68,041              $66,601              $1,440
                                  ================      ===============      ==============
</TABLE>

Net investment income for 2001 was $68.0 million compared to $66.6 million for
2000. The increase in net investment income in 2001 was due to an overall
increase in yields. Investment expense for 2001 and 2000 includes interest
expense on funds withheld of $11.3 million and $11.9 million, respectively,
relating to stop loss reinsurance agreements purchased by Trenwick America
Reinsurance Corporation prior to 2000.

Interest Expense and Subsidiary Preferred Share Dividends

Interest expense and subsidiary preferred share dividends were $31.3 million for
2001, a decrease of $4.4 million from 2000. The decrease resulted from a
reduction in interest on Trenwick America Corporation's bank credit facility
following a general decrease in interest rates.

Non-Operating Income and Expenses

Net realized investment losses, net of income taxes, were $1.2 million during
the 2001 year, compared to net realized gains of $4.4 million for 2000. The 2001
losses include $3.4 million of realized losses on investments to recognize
declines in value that were other than temporary. The gains recognized in 2000
were pursuant to an investment policy designed to protect the total returns on
the portfolio.

Trenwick America Corporation recorded foreign currency losses, net of income
taxes, of $0.9 million for 2001, compared to foreign currency losses, net of
income taxes, of $1.2 million for 2000.

Financings and Financing Capacity

Trenwick America Corporation's financing obligations generally include debt and
lease payment obligations. At December 31, 2001, annual principal payments
required by Trenwick America Corporation through 2006 relating to these
financing obligations are as follows (monetary amounts in tables expressed in
thousands of United States dollars):


                                       7
<PAGE>

<TABLE>
<CAPTION>
                                                                  Payments Due by Period
                                                 ---------------------------------------------------------
Contractual                                       Less than          1-3             4-5          After 5
Obligations                        Total           1 Year           Years           Years          Years
-------------------------       -----------      ----------       ---------       ---------      ---------
<S>                                <C>              <C>            <C>              <C>           <C>
Indebtedness and
   minority interest               $381,035         $43,883        $192,021         $35,131       $110,000
Operating leases                     10,140           1,482           3,146           3,118          2,394
Total contractual cash          -----------      ----------       ---------       ---------      ---------
   obligations                     $391,175         $45,365        $195,167         $38,249       $112,394
                                ===========      ==========       =========       =========      =========
</TABLE>

Trenwick America Corporation's other commercial commitments principally consist
of reimbursement obligations for standby letters of credit. The amounts and
expiration of Trenwick America Corporation's other commercial commitments are as
follows (monetary amounts in table expressed in thousands of United States
dollars):

<TABLE>
<CAPTION>
                                                                   Expiration Periods
                                                 ---------------------------------------------------------
Other Commercial                                  Less than          1-3             4-5          After 5
Commitments                          Total         1 Year           Years           Years          Years
--------------------------        ---------      ----------       ---------       ---------      ---------
<S>                                   <C>            <C>              <C>             <C>           <C>
Standby letters of credit             $36            $36              $-              $-            $-
                                  ----------     ----------       ---------       ---------      ---------
Total other commercial
   commitments                        $36            $36              $-              $-            $-
                                  ==========     ==========       =========       =========      =========
</TABLE>

Concurrent with the Trenwick/LaSalle business combination, Trenwick America
Corporation and Trenwick Holdings Limited, Trenwick Group Ltd.'s U.S. and U.K.
holding companies, entered into an amended and restated $490 million credit
agreement with various lending institutions. The credit agreement consisted of
both a $260 million revolving credit facility and a $230 million letter of
credit facility. The revolving credit facility has subsequently been converted
into a four-year term loan. Trenwick America Corporation is the primary obligor
with respect to the revolving credit facility, and Trenwick Holdings Limited is
the primary obligor with respect to the letter of credit facility. Guarantees
are provided by LaSalle Re Holdings Limited and Trenwick Group Ltd. with respect
to both Trenwick America Corporation's and Trenwick Holdings Limited's
obligations and additionally by Trenwick America Corporation with respect to
Trenwick Holdings Limited's obligations. The credit agreement provides for a
letter of credit facility which may only be used to support the Lloyd's
syndicate participations of Trenwick Group Ltd.'s subsidiaries. The letter of
credit facility is scheduled to expire in November 2002. The applicable interest
rate on borrowings under the credit facility is generally 2.5% above the London
Interbank Offered Rate and was 4.7% at year end 2001. The term loan facility is
subject to scheduled principal amortization over the four-year period in
accordance with the following schedule: 2002, 22.5%; 2003, 27.5%; 2004, 32.5%;
2005, 17.5%.

Trenwick America Corporation is obligated to repay a portion or all of the term
loan in the event of equity issuances, asset sales or debt issuances by Trenwick
Group Ltd. or its subsidiaries. At year end 2001, $195.0 million of term loans
were outstanding, and $230.0 million of letters of credit were outstanding under
the credit facility.

The credit agreement contains general covenants and restrictions as well as
financial covenants relating to, among other things, Trenwick Group Ltd.'s
minimum interest coverage, debt to capital leverage, minimum earned surplus,
maintenance of a minimum A.M. Best Company rating of A- and tangible net worth.
As of year end 2001, Trenwick Group Ltd. was in compliance with the credit
agreement covenants.


                                       8
<PAGE>


The financial covenants relating to interest coverage, risk based capital and
tangible net worth (each as defined by the financial covenants in the credit
agreement) were revised downward in an amendment to the credit agreement
executed following the September 11th terrorist attacks. The amendment set
Trenwick Group Ltd.'s minimum interest coverage ratio at 1.5 to 1 for the fourth
quarter of 2001, 2.0 to 1 for the first quarter of 2002 and 2.5 to 1 thereafter.
Trenwick Group Ltd.'s interest coverage ratio at December 31, 2001 was 2.0 to 1.
The amendment adjusted downward the minimum risk-based capital requirement for
Trenwick America Corporation's subsidiary, Chartwell Insurance Company, from
300% to 225% through December 31, 2002. Thereafter, the minimum risk-based
capital for Chartwell Insurance Company returns to 300%. The risk based capital
for Chartwell Insurance Company as of December 31, 2001 was 257%. The amendment
lowered the base minimum tangible net worth Trenwick Group Ltd. must maintain
from $560 million to $425 million until the reporting of quarterly results of
operations as of March 31, 2002, which are due no later than May 15, 2002. After
May 15, 2002, Trenwick Group Ltd. minimum tangible net worth reverts to $560
million. Trenwick Group Ltd.'s tangible net worth as of December 31, 2001 was
$428 million. If Trenwick Group Ltd. is unable to meet the credit agreement's
financial covenants at the end of the first quarter of 2002, it may be required
to repay the outstanding indebtedness and collateralize the outstanding letters
of credit issued under the credit agreement through additional financing, asset
sales, subsidiary dividends or similar transactions.

Should Trenwick Holdings Limited be unable to meet any letter of credit
reimbursement obligations as they fall due, and such repayments are not
refinanced, Trenwick America Corporation would become liable for such
reimbursements under the terms of its guarantee. No liability for any such
amounts has been reflected in Trenwick America Corporation's financial
statements. Because Trenwick America Corporation is a holding company, its
principal source of funds consists of permissible dividends, tax allocation
payments, other statutorily permissible payments from its operating subsidiaries
and capital contributions from its parent. As a result of recent losses incurred
by Trenwick America Corporation's operating subsidiaries, their cash
distribution capacities have been significantly reduced. Other than as noted
above, Trenwick America Corporation does not have any material off-balance sheet
arrangements, trading activities involving non-exchange traded contracts
accounted for at fair value or relationships with persons or entities that
derive benefits from a non-independent relationship with Trenwick Group Ltd. or
its related parties.

In connection with the Trenwick/LaSalle business combination, Trenwick America
Corporation assumed, effective September 27, 2000, Trenwick Group Inc.'s
obligations with respect to $75 million aggregate principal amount of 6.70%
Senior Notes, which are due April 1, 2003. Interest is payable semi-annually on
April 1 and October 1 of each year; interest payments commenced on October 1,
1998. The notes are not subject to redemption prior to maturity. They are
unsecured obligations and rank senior in right of payment to all existing and
future subordinated indebtedness of Trenwick America Corporation.

Trenwick America Corporation also assumed, effective September 27, 2000,
Trenwick Group Inc.'s 8.82% Junior Subordinated Deferrable Interest Debentures
held by Trenwick Capital Trust I in respect of the $110 million in 8.82%
Subordinated Capital Income Securities issued by the Trust. Under the terms of
the debentures, Trenwick America Corporation is not restricted from incurring
indebtedness, but is subject to limits on its ability to incur secured
indebtedness for borrowed money.

Upon consummation of the acquisition of Chartwell Re Corporation in 1999,
Trenwick Group Inc. became the successor obligor under Chartwell Re
Corporation's Contingent Interest Notes due June 30, 2006. Effective September
27, 2000, Trenwick America Corporation assumed Trenwick Group Inc.'s obligations
under the contingent interest notes in connection with the Trenwick/LaSalle
business combination. The contingent interest notes were issued in an aggregate
principal amount of $1 million, which accrues interest at a rate of 8% per
annum, compounded annually. The interest is not payable until the maturity or
earlier redemption of the contingent interest notes. In addition, the contingent
interest notes entitle their holders to receive at maturity, in proportion to
the principal amount of the contingent


                                       9
<PAGE>


interest notes held by them, an aggregate of from $1 million up to $55 million
in contingent interest. The amount of contingent interest payable under the
contingent interest notes is dependent upon the level of loss and loss
adjustment expense reserves related to business written by Trenwick Group Ltd.'s
subsidiary, The Insurance Corporation of New York, prior to 1996. Settlement of
the contingent interest notes may be made by payment of cash or, under certain
specified conditions, by delivery of Trenwick Group Ltd.'s common shares.

Trenwick America Corporation's ability to refinance its existing debt
obligations or raise additional capital is dependent upon several factors,
including financial conditions with respect to both the equity and debt markets
and the ratings of its securities as established by the rating agencies.
Following Trenwick America Corporation's claims and claims expense liability
reserve increase in the second quarter of 2001 and the losses sustained by
Trenwick Group Ltd. in the September 11th terrorist attacks, Trenwick America
Corporation's senior debt ratings were downgraded by Standard & Poors
Corporation to BBB- and by Moody's Investors Service to Ba2. Trenwick America
Corporation's ability to refinance its outstanding debt obligations, as well as
the cost of such borrowings, could be adversely affected by these ratings
downgrades or if its ratings were downgraded further.

Critical Accounting Policies

The accounting policies described below are those Trenwick America Corporation
considers critical in preparing its consolidated financial statements. These
policies include significant estimates made by management using information
available at the time the estimates are made. However, as described below, these
estimates could change materially if different information or assumptions were
used. The descriptions below are summarized and have been simplified for
clarity. A more detailed description of the significant accounting policies used
by Trenwick America Corporation in preparing its financial statements is
included in the Notes to the Consolidated Financial Statements and the note
references are included below.

Unpaid Claims and Claims Expenses

Trenwick America Corporation establishes liabilities for claims and claims
expenses that have been reported but not paid and claims and claims expenses
that have been incurred but not reported under its insurance and reinsurance
contracts. These liabilities are developed using actuarial principles and
assumptions which consider a number of factors, including historical claims and
claims expense patterns, which are described in the Notes to the Consolidated
Financial Statements. An extensive degree of judgment is used in this estimation
process. Because the future cannot be predicted with certainty, the actual
future claims and claims expense payments are usually different from the
previously recorded liability estimates. Sometimes the differences are
significant. Any adjustments to Trenwick America Corporation's liabilities for
claims and claims expenses are included in Trenwick America Corporation's
results of operations in the period in which the need for the adjustment becomes
known. Due to the considerable variability of the insurance and reinsurance
business underwritten by Trenwick America Corporation, adjustments to its
liabilities for claims and claims expenses may occur each quarter and are
sometimes significant. Also see Note 4 of Notes to the Consolidated Financial
Statements.

Reinsurance Recoverable Balances

Trenwick America Corporation purchases reinsurance to reduce its exposure on
individual risks, catastrophic losses and other large losses. Trenwick America
Corporation estimates the amount of uncollectable receivables from its
reinsurers each period and establishes an allowance for uncollectable amounts.
The amount of the allowance is based on the age of unpaid amounts, information
about the creditworthiness of Trenwick America Corporation's reinsurers, and
other relevant information. Estimates of uncollectable reinsurance amounts
are revised each period, and changes are recorded in the period they become
known. A significant change in the level of uncollectable reinsurance amounts

                                       10
<PAGE>


would have a significant effect on Trenwick America Corporation's results of
operations. Also see Note 4 of Notes to the Consolidated Financial Statements.

Investments

Investments are classified as available for sale and recorded at fair value, and
unrealized investment gains and losses are reflected in shareholders' equity.
Investment income is recorded when earned, and capital gains and losses are
recognized when investments are sold. Investments are reviewed periodically to
determine if they have suffered an impairment of value that is considered other
than temporary. If investments are determined to be impaired, a capital loss is
recognized at the date of determination.

Testing for impairment of investments also requires significant management
judgment. The identification of potentially impaired investments, the
determination of their fair value and the assessment of whether any decline in
value is other than temporary are the key judgment elements. The discovery of
new information and the passage of time can significantly change these
judgments. Revisions of impairment judgments are made when new information
becomes known, and any resulting impairment adjustments are made at that time.
The current economic environment and recent volatility of securities markets
increase the difficulty of determining fair value and assessing investment
impairment. The same influences tend to increase the risk of potentially
impaired assets.

Trenwick America Corporation seeks to match the maturities of invested assets
with the payment of expected liabilities. By doing this, Trenwick America
Corporation attempts to make cash available as payments become due. If a
significant mismatch of the maturities of assets and liabilities were to occur
and Trenwick America Corporation had to liquidate investments prior to their
maturity, it may incur realized losses and, the effect on Trenwick America
Corporation's results of operations could be significant. Also see Note 5 of
Notes to the Consolidated Financial Statements.

Deferred Income Taxes

Trenwick America Corporation recorded as an asset as of December 31, 2001 $65.8
million of net deferred income taxes. The net deferred income taxes represent
the expected future tax benefit of losses previously incurred by Trenwick
America Corporation. The future tax benefit must be used on or before 2021. In
order to maintain its net deferred income taxes as an asset, Trenwick America
Corporation is required to determine that it is more likely than not that it
will be able to realize the future tax benefit of its previously incurred
losses. In making this determination, Trenwick America Corporation is required
to make estimates as to its future income. If Trenwick America Corporation's
estimates of its future income were to be revised and it became more likely than
not that Trenwick America Corporation would not be able to realize the future
tax benefit of its previously incurred losses, the effect on Trenwick America
Corporation's results of operations could be significant. Also see Note 7 of
Notes to the Consolidated Financial Statements.

Quantitative and Qualitative Disclosure About Market Risk

The following sections address the significant market risks associated with
Trenwick America Corporation's business activities as of December 31, 2001 and
2000. Trenwick America Corporation's primary market risk exposures are:

o    foreign currency exchange risk;

o    interest rate risk; and

o    equity price risk.

With respect to Trenwick America Corporation's investment portfolio, the risk
management strategy is to place its investments with high credit quality issuers
and to limit the amount of credit exposure with respect to particular ratings
categories and any one issuer. Trenwick America Corporation selects


                                       11
<PAGE>


investments with characteristics such as duration, yield, currency and liquidity
to reflect the underlying characteristics of related estimated claim
liabilities.

As of December 31, 2001, Trenwick America Corporation's exposure to high yield
investments was minimal. While these investments are more susceptible to credit
risk, their total market value represents 5% of total investments and cash and
therefore management believes that the exposure to credit risk is not material.
Trenwick America Corporation has no derivatives and its investments do not
contain terms that may result in potential losses due to leverage.

The borrowings of Trenwick America Corporation are summarized in note 6 to the
financial statements.

Foreign Currency Exchange Rate Risk

Foreign currency risk is the risk that Trenwick America Corporation will incur
economic losses due to adverse changes in foreign currency exchange rates. This
risk arises from Trenwick America Corporation's debt obligations and securities
denominated in foreign currencies. Trenwick America Corporation's debt
obligations denominated in foreign currencies were $13.0 million and $13.4
million at year end 2001 and 2000, respectively.

Trenwick America Corporation's reinsurance operations have exposures to
movements in various currencies, particularly the British pound sterling and the
Canadian dollar, as some of its business is denominated in those currencies.
Therefore, changes in currency exchange rates affect Trenwick America
Corporation's balance sheet, statement of operations and statement of cash
flows. This exposure is somewhat mitigated by the fact that premiums received
are invested in the same currency portfolios, to partially offset related unpaid
claims and claims expense liabilities denominated in the same currency.

Management estimates that a 10% immediate unfavorable change in each of the
foreign currency exchange rates to which Trenwick America Corporation is exposed
at year end 2001 would have decreased the fair value of Trenwick America
Corporation's foreign denominated net liabilities by approximately $1.0 million.
At year end 2000, the same 10% shift in foreign currency exchange rates would
have resulted in a potential loss in fair value of the foreign denominated net
assets of approximately $2.8 million.

Interest Rate Risk

Trenwick America Corporation's fixed maturity investments and indebtedness are
subject to interest rate risk. Increases and decreases in prevailing interest
rates generally translate into decreases and increases in the fair value of
fixed maturity investments and the interest payable on Trenwick America
Corporation's outstanding variable rate debt. Additionally, the fair value of
interest rate sensitive instruments may be affected by the creditworthiness of
the issuer, a prepayment option, relative values of alternative investments,
liquidity of the investment and other general market conditions.

Trenwick America Corporation monitors its sensitivity to interest rate risk by
evaluating the change in its financial assets and liabilities relative to
hypothetical increases and decreases in interest rates. It is assumed that the
changes occur immediately and uniformly to each category of instrument
containing interest rate risks. The hypothetical changes in market interest
rates reflect what could be deemed best or worst case scenarios. Significant
variations in market interest rates could produce changes in the timing of
repayments due to prepayment options available. The fair value of such
instruments could be affected and therefore actual results might differ from
those reflected in this summary.

A 100 basis point increase in market interest rates would have resulted in an
estimated pre-tax loss in the fair value of these instruments of $33.9 million
and $31.1 million at year end 2001 and 2000,


                                       12
<PAGE>


respectively. Similarly, a 100 basis point decrease in market interest rates
would have resulted in an estimated pre-tax gain in the fair value of these
instruments of $29.8 million and $28.2 million at year end 2001 and 2000,
respectively.

Trenwick America Corporation has not experienced unrealized gains or losses to
the extent indicated above.

Equity Price Risk

The carrying values of investments subject to equity price risks are based on
quoted market prices or management's estimates of fair value as of the balance
sheet date. Market prices are subject to fluctuation and, consequently, the
amount realized in the subsequent sale of an investment may significantly differ
from the reported market value. Fluctuation in the market price of a security
may result from perceived changes in the underlying economic characteristics of
the investee, the relative price of alternative investments and general market
conditions. Furthermore, amounts realized in the sale of a particular security
may be affected by the relative quantity of the security being sold.

Of Trenwick America Corporation's $24.2 million equity portfolio at year end
2001, $14.6 million were subject to equity risk. Trenwick America Corporation's
potential exposure on equity securities is estimated in terms of an immediate
10% drop in equity prices across all equity securities holdings from those
prevailing at year end 2001 which would have resulted in a $1.5 million loss. At
year end 2000, the same drop in equity prices would have resulted in an $8.3
million loss.

The fair value estimates shown are based on the composition of the equity
security portfolio at year-end and these exposures will change as a result of
ongoing portfolio activities in response to management's assessment of changing
market conditions and available investment opportunities.

The above analyses do not take into account any correlation among foreign
currency exchange rates, or any correlation among various markets (i.e., the
fixed income markets and foreign exchange and equity markets). Trenwick America
Corporation's actual experience may differ from the results noted above due to
the correlation assumptions utilized, or if events occur that were not included
in the methodology, such as significant liquidity or market events. The
selection of the amount of increases or decreases in currency exchange rates,
interest rates and equity values in the above analyses should not be construed
as a prediction of future market events, but rather, to illustrate the potential
impact of such events.

Accounting Standards

In July 2001, the Financial Accounting Standards Board issued a statement
covering goodwill and other intangible assets, which is required to be adopted
at the beginning of 2002. The statement requires that the goodwill be tested for
impairment under either market value or cash flow tests and any impairment to be
recorded as of January 1, 2002 as the cumulative effect of an accounting change.
The impairment tests must be completed by the reporting of quarterly results of
operations as of June 30, 2002. We will conduct impairment tests on the goodwill
balance and implement the statement during the first or second quarter of 2002.
Goodwill amortization was $1.5 million in 2001.

Effective January 1, 2001, Trenwick America Corporation implemented SFAS No.
133, "Accounting for Derivative Instruments and Hedging Activities." SFAS No.
133 establishes accounting and reporting standards for derivative instruments,
including certain derivative instruments embedded in other contracts, and for
hedging activities. It requires that an entity recognize all derivatives as
either assets or liabilities in the statement of financial position and measure
those instruments at fair value. The adoption of SFAS No. 133 had no significant
impact on Trenwick America Corporation's consolidated financial statements.


                                       13
<PAGE>


Safe Harbor Disclosure

In connection with the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995, Trenwick America Corporation sets forth below
cautionary statements identifying important risks and uncertainties that could
cause its actual results to differ materially from those that might be
projected, forecasted or estimated in its "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934, made by or on behalf of Trenwick America
Corporation in this Annual Report on Form 10-K and in press releases, written
statements or documents filed with the Securities and Exchange Commission, or in
its communications and discussions with investors and analysts in the normal
course of business through meetings, phone calls and conference calls. Such
statements may include, but are not limited to, projections of premium revenue,
investment income, other revenue, losses, expenses, earnings (including earnings
per share), cash flows, plans for future operations, common shareholders' equity
(including book value per share), investments, financing needs, capital plans,
dividends, plans relating to products or services of Trenwick America
Corporation and estimates concerning the effects of litigation or other
disputes, as well as assumptions for any of the foregoing and generally
expressed with words such as "believes," "estimates," "expects," "anticipates,"
"plans," "projects," "forecasts," "goals," "could have," "may have," and similar
expressions.

Forward-looking statements involve known and unknown risks and uncertainties,
which may cause Trenwick America Corporation's results to differ materially from
such forward-looking statements. These risks and uncertainties include, but are
not limited to, the following:

     -    Changes in the level of competition in the domestic and international
          reinsurance or primary insurance markets that affect the volume or
          profitability of Trenwick America Corporation's property/casualty
          business. These changes include, but are not limited to, changes in
          the intensity of price competition, the entry of new competitors,
          existing competitors exiting the market and the development of new
          products by new and existing competitors:

     -    Changes in the demand for reinsurance, including changes in ceding
          companies' risk retentions and changes in the demand for excess and
          surplus lines insurance coverages;

     -    Changes in reinsurance purchasing and distribution patterns;

     -    The ability of Trenwick America Corporation to execute its strategies
          in its property/casualty operations;

     -    Catastrophe losses in Trenwick America Corporation's property/casualty
          businesses;

     -    Adverse development on property/casualty claims and claims expense
          liabilities related to business written in prior years, including, but
          not limited to, evolving case law and its effect on environmental and
          other latent injury claims, changing government regulations, newly
          identified toxins, newly reported claims, new theories of liability,
          or new insurance and reinsurance contract interpretations;

     -    Changes in inflation that affect the profitability of Trenwick America
          Corporation's current property/casualty business or the adequacy of
          its property/casualty claims and claims expense liabilities and policy
          benefit liabilities related to prior years' business;

     -    Changes in Trenwick America Corporation's property/casualty
          retrocessional arrangements;

     -    Lower than estimated retrocessional or reinsurance recoveries on
          unpaid losses, including, but not limited to, losses due to a decline
          in the creditworthiness of Trenwick America Corporation's
          retrocessionaires or reinsurers;

     -    Increases in interest rates, which may cause a reduction in the market
          value of Trenwick America Corporation's fixed income portfolio, and
          its common shareholders' equity;

     -    Decreases in interest rates which may cause a reduction of income
          earned on new cash flow from operations and the reinvestment of the
          proceeds from sales or maturities of existing investments;

     -    A decline in the value of Trenwick America Corporation's equity
          investments;

     -    Changes in the composition of Trenwick America Corporation's
          investment portfolio;

     -    Credit losses on Trenwick America Corporation's investment portfolio;


                                       14
<PAGE>



     -    Adverse results in litigation matters, including, but not limited to,
          litigation related to environmental, asbestos and other potential mass
          tort claims;

     -    The impact of mergers and acquisitions;

     -    Gains or losses related to changes in foreign currency exchange rates;

     -    Changes in Trenwick America Corporation's capital needs;

     -    The ability of Trenwick America Corporation to refinance or repay its
          outstanding indebtedness; and

     -    Changes in the financial strength ratings assigned to Trenwick America
          Corporation and its operating subsidiaries.

In addition to the factors outlined above that are directly related to Trenwick
America Corporation's business, it is also subject to general business risks,
including, but not limited to, adverse state, federal or foreign legislation and
regulation, adverse publicity or news coverage, changes in general economic
factors and the loss of key employees.

The facts set forth above should be considered in connection with any
forward-looking statement contained in this Annual Report on Form 10-K. The
important factors that could affect such forward-looking statements are subject
to change, and Trenwick America Corporation does not intend to update any
forward-looking statement or the foregoing list of important factors. By this
cautionary note Trenwick America Corporation intends to avail itself of the safe
harbor from liability with respect of forward-looking statements provided by
Section 27A and Section 21E referred to above.

Item 7a.  Quantitative and Qualitative Disclosures About Market Risk

This information called for by this item can be found under the caption
"Quantitative and Qualitative Disclosure About Market Risk" in Management's
Discussion and Analysis of Financial Condition and Results of Operations above
and is incorporated herein by reference.


Item 8.  Financial Statements and Supplementary Data

See the Consolidated Financial Statements and Notes thereto and the Schedules on
pages F-1 through F-28 and S-1 through S-6 included in Part IV, Item 14.

Item 9.  Changes in and Disagreements with Accountants on Accounting and
         Financial Disclosure

None.

PART III

Items 10-13. Information required by Items 10 through 13 has been omitted
because Trenwick America Corporation meets the conditions set forth in General
Instruction I (1)(a) and (b) of Form 10-K and is therefore filing this Annual
Report on Form 10-K in the reduced disclosure format.

PART IV

Item 14.  Exhibits, Financial Statement Schedules and Reports on Form 8-K.

(a)  The following documents are filed as part of this report:

     1.   Financial statements:

          Report of Independent Accountants - (Page F-1).


                                       15
<PAGE>


          Consolidated Balance Sheet at December 31, 2001 and 2000. (Page F-2).

          Consolidated Statements of Operations, Comprehensive Income and
          Changes in Common Stockholder's Equity for the years ended December
          31, 2001, 2000 and 1999. (Page F-3).

          Consolidated Statement of Cash Flows for the years ended December 31,
          2001, 2000 and 1999. (Page F-4).

          Notes to Consolidated Financial Statements. (Pages F-5 through F-28).

     2.   Financial statement schedules required to be filed by Item 8 of this
          Form:

                  Schedule
          Page    Number
          ----    --------
          S-1                Report of Independent Accountants on Financial
                             Statement Schedules.

          S-2     II         Condensed Financial Information of Registrant.

          S-5     III        Supplementary Insurance Information.

          S-6     V          Valuation and Qualifying Accounts.

(b)  Exhibits

     3.1  Certificate of Incorporation of Trenwick America Corporation.
          Incorporated by reference to Exhibit 3.1 to Trenwick America
          Corporation's Current Report on Form 8-K filed on November 16, 2000
          (File No. 0-31967).

     3.2  By-Laws of Trenwick America Corporation. Incorporated by reference to
          Exhibit 3.2 to Trenwick America Corporation's Current Report on Form
          8-K (File No.0-31967).

     4.1  (a)  Indenture dated as of January 31, 1997, between The Chase
               Manhattan Bank and Trenwick Group Inc. Incorporated by reference
               to Exhibit 4.2(a) to Trenwick Group Inc.'s Annual Report on Form
               10-K for the year ended December 31, 1996 (File No. 0-14737).

          (b)  Amended and Restated Declaration of Trust of Trenwick Capital
               Trust I dated as of January 31, 1997. Incorporated by reference
               to Exhibit 4.2(b) to Trenwick Group Inc.'s Annual Report on Form
               10-K for the year ended December 31, 1996 (File No. 0-14737).

          (c)  Exchange Capital Securities Guarantee Agreement dated as of July
               25, 1997, between Trenwick Group Inc. and The Chase Manhattan
               Bank, as Trustee. Incorporated by reference to Exhibit 4.7 to
               Trenwick Group Inc.'s Registration Statement on Form S-4 (File
               No. 333-28707).

     4.2  First Supplemental Indenture, dated as of September 27, 2000, among
          Trenwick Group Inc., Trenwick America Corporation and The Chase
          Manhattan Bank, as Trustee, with respect to the 8.82% Junior
          Subordinated Deferrable Interest Debentures. Incorporated by


                                       16
<PAGE>


          reference to Exhibit 4.2 to Trenwick America Corporation's Current
          Report on Form 8-K, filed on November 16, 2000 (File No. 0-31967).

     4.3  Indenture dated as of March 27, 1998 between Trenwick and The First
          National Bank of Chicago, as Trustee, with respect to Trenwick Group
          Inc.'s $75 million principal amount of 6.7% Senior Notes due April 1,
          2003. Incorporated by reference to Exhibit 4.2 to Trenwick Group
          Inc.'s Quarterly Report on Form 10-Q for the quarter ended March 31,
          1998 (File No. 1-15389).

     4.4  First Supplemental Indenture, dated as of September 27, 2000, among
          Trenwick Group Inc., Trenwick America Corporation, and Bank One Trust
          Company, N.A., as successor to First National Bank of Chicago, as
          Trustee, with respect to the $75 million principal amount of 6.7%
          Senior Notes due April 1, 2003. Incorporated by reference to Exhibit
          4.4 to Trenwick America Corporation's Current Report on Form 8-K,
          filed on November 16, 2000 (File No. 0-31967).

     4.5  Indenture, dated as of December 1, 1995, between Chartwell Re
          Corporation, as the successor to Piedmont Management Company Inc., and
          Fleet Bank, as Trustee, for the Contingent Interest Notes due June 30,
          2006. Incorporated by reference to Exhibit 4.5 to Chartwell Re
          Corporation's Registration Statement on Form S-1 (File No. 333-678).

     4.6  First Supplemental Indenture, dated as of December 13, 1995, among
          Piedmont Management Company, Chartwell Re Corporation and Fleet Bank,
          as Trustee under the Contingent Interest Notes due June 30, 2006.
          Incorporated by reference to Exhibit 4.6 to Chartwell Re Corporation's
          Registration Statement on Form S-1 (File No. 333-678).

     4.7  Second Supplemental Indenture, dated as of October 27, 1999, among
          Chartwell Re Corporation, Trenwick Group Inc. and State Street Bank
          and Trust Company, as successor to Fleet Bank, as Trustee, with
          respect to the Contingent Interest Notes due June 30, 2006.
          Incorporated by reference to Exhibit 4.7 to Trenwick America
          Corporation's Current Report on Form 8-K, filed on November 16, 2000
          (File No. 0-31967).

     4.8  Third Supplemental Indenture, dated as of September 27, 2000, among
          Trenwick Group Inc., Trenwick America Corporation and State Street
          Bank and Trust Company, as successor to Fleet Bank, as Trustee under
          the contingent Interest Notes due June 30, 2006. Incorporated by
          reference to Exhibit 4.8 to Trenwick America Corporation's Current
          Report on Form 8-K, filed on November 16, 2000 (File No. 0-31967).

     10.1 Amended and Restated Credit Agreement, dated as of November 24, 1999
          and Amended and Restated as of September 27, 2000, among Trenwick
          America Corporation, Trenwick Holdings Limited, various lending
          institutions, First Union National Bank, as Syndication Agent, Fleet
          National Bank, as Documentation Agent, and Chase Manhattan Bank, as
          Administrative Agent. Incorporated by reference to Exhibit 10.1 to
          Trenwick Group Ltd,'s Quarterly Report on Form 10-Q for the quarter
          ended September 30, 2000 (File No. 1-16089).

     10.2 First Amendment and Waiver to the Credit Agreement, dated as of June
          13, 2001, among Trenwick America Corporation, Trenwick Holdings
          Limited, the lending institutions from time to time party thereto,
          First Union National Bank, as Syndication Agent, Fleet National Bank,
          as Documentation Agent, and The Chase Manhattan Bank, as
          Administrative Agent. Incorporated by reference to Exhibit 10.1 to
          Trenwick America Corporation's First Amendment to Quarterly Report on
          Form 10-Q, filed on January 11, 2002 (File No. 0-31967).


                                       17
<PAGE>


    10.3  First Amendment to the Holdings Guaranty, dated as of June 13, 2001,
          among Trenwick Group Ltd. and the lending institutions from time to
          time party to the Credit Agreement. Incorporated by reference to
          Exhibit 10.2 to Trenwick America Corporation's First Amendment to
          Quarterly Report on Form 10-Q, filed on January 11, 2002 (File No.
          0-31967).

    10.4  Second Amendment and Waiver to the Credit Agreement, dated as of
          November 13, 2001, among Trenwick America Corporation, Trenwick
          Holdings Limited, the lending institutions from time to time party
          thereto, First Union National Bank, as Syndication Agent, Fleet
          National Bank, as Documentation Agent, and JP Morgan Chase Bank, as
          Administrative Agent. Incorporated by reference to Exhibit 10.3 to
          Trenwick America Corporation's First Amendment to Quarterly Report on
          Form 10-Q, filed on January 11, 2002 (File No. 0-31967).

    10.5  Second Amendment to the Holdings Guaranty, dated as of November 13,
          2001, among Trenwick Group Ltd. and the lending institutions from time
          to time party to the Credit Agreement. Incorporated by reference to
          Exhibit 10.4 to Trenwick America Corporation's First Amendment to
          Quarterly Report on Form 10-Q, filed on January 11, 2002 (File No.
          0-31967).

    10.6  Office lease between Trenwick America Corporation and EOP-Canterbury
          Green, L.L.C. dated as of January 29, 1998, with respect to office
          space in Stamford, Connecticut. Incorporated by reference to Exhibit
          10.16 to Trenwick Group Inc.'s Annual Report on Form 10-K for the year
          ended December 31, 1997 (File No. 1-15389).

    10.7  First Amendment dated as of March 31, 1998, to office lease between
          Trenwick America Corporation and EOP-Canterbury Green L.L.C. dated
          January 29, 1998. Incorporated by reference to Exhibit 10.11 to
          Trenwick Group Inc.'s Annual Report on Form 10-K for the year ended
          December 31, 1998 (File No. 1-15389).

    10.8  Coinsured Aggregate Excess of Loss Reinsurance Agreement between
          Trenwick America Reinsurance Corporation and Centre Reinsurance
          Company of New York. Incorporated by reference to Exhibit 10.28 to
          Trenwick Group Inc.'s Annual Report on Form 10-K for the year ended
          December 31, 1994 (File No. 0-14737).

    10.9  Aggregate Excess of Loss Ratio Cover between Trenwick America
          Reinsurance Corporation and Continental Casualty Company. Incorporated
          by reference to Exhibit 10.22 to Trenwick Group Inc.'s Annual Report
          on Form 10-K for the year ended December 31, 1995 (File No. 0-14737).

    10.10 1996 Coinsured Aggregate Excess of Loss Reinsurance Agreement between
          Trenwick America Reinsurance Corporation and Centre Reinsurance
          Company of New York and CNA Re. Incorporated by reference to Exhibit
          10.33 to Trenwick Group Inc.'s Annual Report on Form 10-K for the year
          ended December 31, 1996 (File No. 0-14737).

    10.11 First and Second Coinsured Aggregate Excess of Loss Reinsurance
          Agreement between Trenwick America Reinsurance Corporation and Centre
          Reinsurance Company of New York and CNA Re. Incorporated by reference
          to Exhibit 10.31 to Trenwick Group Inc.'s Annual Report on Form 10-K
          for the year ended December 31, 1997 (File No. 1-15389).

    10.12 1998 Coinsured Aggregate Excess of Loss Reinsurance Agreement between
          Trenwick America Reinsurance Corporation and Centre Reinsurance
          Company of New York and


                                       18
<PAGE>


          National Union. Incorporated by reference to Exhibit 10.27 to Trenwick
          Group Inc.'s Annual Report on Form 10-K for the year ended December
          31, 1998 (File No. 1-15389).

    10.13 1999 Coinsured Aggregate Excess of Loss Reinsurance Agreement between
          Trenwick America Reinsurance Corporation and Centre Insurance Company
          and National Union. Incorporated by reference to Exhibit 10.39 to
          Trenwick Group Inc.'s Annual Report on Form 10-K for the year ended
          December 31, 1999 (File No. 1-15389).

    10.14 Aggregate Excess of Loss Reinsurance Agreement, dated as of October
          27, 1999, by and between Chartwell Reinsurance Company, Dakota
          Specialty Insurance Company, The Insurance Corporation of New York and
          Drayton Company Limited, inclusive of corporate capital support of
          London underwriting operations, and London Life and Casualty
          Reinsurance Corporation and Scandinavian Reinsurance Company, Ltd.
          Incorporated by reference to Exhibit 10.40 to Trenwick Group Inc.'s
          Annual Report on Form 10-K for the year ended December 31, 1999 (File
          No. 1-15389).

    12.1  Computation of Ratios.

    23.1  Consent of PricewaterhouseCoopers LLP

(b)  Reports on Form 8-K

     Trenwick America Corporation did not file any Current Reports on Form 8-K
     during the fourth quarter of 2001.





                                       19
<PAGE>


SIGNATURES

Pursuant to the Requirements of Section 13 or 15(d) of Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.

                                       TRENWICK AMERICA CORPORATION
                                               (Registrant)


                                         By  /s/ Stephen H. Binet
                                             -----------------------------------
                                             Stephen H. Binet
                                             President, Chief Executive Officer,
                                             and Director
Dated:  March 18, 2002

Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the following persons on behalf of the registrant and
in the capacities and on the dates indicated.

Signature                        Title                           Date
---------                        -----                           ----

/s/Stephen H. Binet              President, Chief Executive      March 18, 2002
-------------------------        Officer, and Director
   Stephen H. Binet

/s/Alan L. Hunte                 Executive Vice President,       March 18, 2002
-------------------------        Chief Accounting Officer,
   Alan L. Hunte                  and Director


/s/James F. Billett, Jr.         Chairman of the Board           March 18, 2002
-------------------------
   James F. Billett, Jr.

/s/Paul Feldsher                 Director                        March 18, 2002
-------------------------
   Paul Feldsher

/s/Robert A. Giambo              Director                        March 18, 2002
-------------------------
   Robert A. Giambo

/s/James E. Roberts              Director                        March 18, 2002
-------------------------
   James E. Roberts


                                       20
<PAGE>


                        Report of Independent Accountants


To the Board of Directors
and Stockholder of
Trenwick America Corporation


In our opinion, the accompanying consolidated balance sheet and the related
consolidated statements of operations, comprehensive income and changes in
common stockholder's equity and of cash flows present fairly, in all material
respects, the financial position of Trenwick America Corporation and its
subsidiaries at December 31, 2001 and December 31, 2000, and the results of
their operations and their cash flows for each of the three years in the period
ended December 31, 2001 in conformity with accounting principles generally
accepted in the United States of America. These financial statements are the
responsibility of the Company's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these statements in accordance with auditing standards generally
accepted in the United States of America, which require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates made by
management, and evaluating the overall financial statement presentation. We
believe that our audits provide a reasonable basis for our opinion.



/s/ PricewaterhouseCoopers LLP



New York, New York
February 27, 2002



                                      F-1
<PAGE>


                          Trenwick America Corporation
                           Consolidated Balance Sheet
            (Amounts expressed in thousands of United States dollars)
                           December 31, 2001 and 2000

<TABLE>
<CAPTION>
                                                                   2001               2000
                                                                ----------        ----------
<S>                                                             <C>               <C>
ASSETS:
Debt securities available for sale, at fair value               $1,054,518        $1,006,161
Equity securities, at fair value                                    24,164           103,641
Cash and cash equivalents                                          128,522           133,395
Accrued investment income                                           12,685            14,006
Premiums receivable                                                159,721           158,110
Reinsurance recoverable balances, net                              544,202           511,163
Prepaid reinsurance premiums                                        83,980            63,879
Deferred policy acquisition costs                                   45,403            36,267
Due from parent and affiliates                                      68,260            57,952
Net deferred income taxes                                           65,757            63,598
Goodwill                                                            52,119            33,976
Other assets                                                        89,774           102,874
                                                                ----------        ----------
Total assets                                                    $2,329,105        $2,285,022
                                                                ==========        ==========
LIABILITIES:
Unpaid claims and claims expenses                               $1,412,104        $1,396,504
Unearned premium income                                            239,004           177,174
Reinsurance balances payable                                        42,424            26,401
Indebtedness                                                       288,878           283,289
Due to affiliates                                                   50,434            75,303
Other liabilities                                                   33,939            38,385
                                                                ----------        ----------
Total liabilities                                                2,066,783         1,997,056
                                                                ----------        ----------
MINORITY INTEREST:
Mandatorily redeemable preferred capital securities
  of subsidiary trust holding solely junior
  subordinated debentures of Trenwick
  America Corporation                                               86,973            87,059
                                                                ----------        ----------
COMMON STOCKHOLDER'S EQUITY
Common stock and additional paid in capital                         99,353           114,847
Retained earnings                                                   57,104            76,629
Accumulated other comprehensive income                              18,892             9,431
                                                                ----------        ----------
Total common stockholder's equity                                  175,349           200,907
                                                                ----------        ----------
Total liabilities, minority interest
   and common stockholder's equity                              $2,329,105        $2,285,022
                                                                ==========        ==========
</TABLE>

The accompanying notes are an integral part of these statements.


                                      F-2
<PAGE>


                          Trenwick America Corporation
           Consolidated Statement of Operations, Comprehensive Income
                   and Changes in Common Stockholder's Equity
            (Amounts expressed in thousands of United States dollars)
                  Years Ended December 31, 2001, 2000 and 1999

<TABLE>
<CAPTION>
                                                    2001         2000         1999
                                                 ---------    ---------    ---------
<S>                                              <C>          <C>          <C>
Revenues:
Net premiums earned                              $ 380,288    $ 310,791    $ 187,885
Net investment income                               68,041       66,601       40,291
Net realized investment gains (losses)              (1,866)       6,768          971
Other income                                         2,819        2,823          569
                                                 ---------    ---------    ---------
Total revenues                                     449,282      386,983      229,716
                                                 ---------    ---------    ---------

Expenses:
Claims and claims expenses incurred                305,488      276,043      147,182
Policy acquisition costs                           122,213       92,980       62,550
Underwriting expenses                               18,890       20,730       17,694
General and administrative expenses                  2,562       18,776        5,990
Goodwill amortization                                1,512          355           --
Interest expense and subsidiary
  preferred share dividends                         31,336       35,769       18,550
Foreign currency losses                              1,434        1,831           --
                                                 ---------    ---------    ---------
Total expenses                                     483,435      446,484      251,966
                                                 ---------    ---------    ---------

Loss before income taxes                           (34,153)     (59,501)     (22,250)
Income taxes (benefit)                             (14,628)     (22,529)     (12,355)
                                                 ---------    ---------    ---------
Net loss                                           (19,525)     (36,972)      (9,895)
Net unrealized investment gains (losses)            11,043       14,713      (25,154)
Foreign currency translation adjustments            (1,582)       1,466       (1,458)
                                                 ---------    ---------    ---------
Comprehensive loss                               $ (10,064)   $ (20,793)   $ (36,507)
                                                 =========    =========    =========

Changes in common stockholder's equity:
Common stockholder's equity, beginning of year   $ 200,907    $ 214,482    $ 208,332
Net capital transactions with affiliates           (13,486)     (21,076)      88,757
Adjustments related to business combination         (2,008)      37,794           --
Comprehensive loss                                 (10,064)     (20,793)     (36,507)
Common share dividends                                  --       (9,500)     (46,100)
                                                 ---------    ---------    ---------

Common stockholder's equity, end of year         $ 175,349    $ 200,907    $ 214,482
                                                 =========    =========    =========
</TABLE>

The accompanying notes are an integral part of these statements.


                                      F-3
<PAGE>


        Trenwick America Corporation Consolidated Statement of Cash Flows
            (Amounts expressed in thousands of United States dollars)
                  Years ended December 31, 2001, 2000 and 1999

<TABLE>
<CAPTION>
                                                                                             2001            2000            1999
                                                                                          ---------       ---------       ---------
<S>                                                                                        <C>             <C>              <C>
Net income (loss)                                                                          $(19,525)       $(36,972)        $(9,895)
Adjustments to reconcile net income (loss) to net
  cash from (for) operating activities:
  Contingent interest note adjustments                                                       (8,700)         (4,675)            642
  Investment premium amortization                                                               389             633           1,832
  Deferred income taxes                                                                     (25,753)           (289)          5,056
  Net realized investment gains (losses)                                                      1,866          (6,768)           (971)
  Unrealized loss (gain) on foreign exchange                                                 (1,040)          1,883              --
  Uncollectable accounts provision                                                            3,320          11,666           7,779
  Other fair value adjustment accretion                                                         458             365              --
  Loss sharing agreement reallocation                                                       (28,570)         17,756          10,814
  Other                                                                                         760          (6,859)         (4,803)
  Changes in assets and liabilities, net of effects from
  purchase of subsidiary:
  Accrued investment income                                                                   1,321           3,847           1,354
  Premiums receivable                                                                        (1,611)         (4,398)         59,995
  Deferred policy acquisition costs                                                          (9,136)          1,704           7,032
  Other assets                                                                               18,806          37,901         (58,897)
  Unpaid claims and claims expenses, net of
     reinsurance recoverable balances                                                       (17,440)        (76,962)        (61,170)
  Unearned premium income, net of prepaid
     reinsurance premiums                                                                    41,730         (10,351)        (15,944)
   Other liabilities                                                                         13,143         (26,704)         (7,576)
                                                                                          ---------       ---------       ---------
Cash for operating activities                                                               (29,982)        (98,223)        (64,752)
                                                                                          ---------       ---------       ---------
Investing activities:
  Debt and equity securities sales and maturities                                           646,048         481,853         272,390
  Debt and equity securities purchases                                                     (599,566)       (327,491)       (134,381)
  Cash acquired in pooling business combination                                                  --              --          34,131
  Other investing activities                                                                 (5,320)         (1,552)          8,424
                                                                                          ---------       ---------       ---------
Cash from investing activities                                                               41,162         152,810         180,564
                                                                                          ---------       ---------       ---------
Financing activities:
  Indebtedness proceeds                                                                      14,000          24,000              --
  Indebtedness costs                                                                         (1,475)         (1,834)             --
  Indebtedness repayments                                                                        --         (41,101)        (48,417)
  Affiliate loan proceeds (repayments)                                                      (33,677)         57,288          54,855
  Affiliate capital transactions, net                                                         5,099         (47,901)
  Dividend payments                                                                              --          (9,500)        (46,100)
  Other financing activities, net                                                                --              --          (9,056)
                                                                                          ---------       ---------       ---------
Cash for financing activities                                                               (16,053)        (19,048)        (48,718)
                                                                                          ---------       ---------       ---------
Change in cash and cash equivalents                                                          (4,873)         35,539          67,094
Cash and cash equivalents, beginning of year                                                133,395          97,856          30,762
                                                                                          ---------       ---------       ---------
Cash and cash equivalents, end of year                                                     $128,522        $133,395         $97,856
                                                                                          =========       =========       =========
</TABLE>


                                      F-4
<PAGE>


                          TRENWICK AMERICA CORPORATION
                   Notes to Consolidated Financial Statements
   (Amounts expressed in thousands of United States dollars except share data)
                  Years Ended December 31, 2001, 2000 and 1999

Note 1             Organization
Organization       Trenwick America Corporation is a United States holding
and Basis          company whose principal subsidiaries underwrite specialty
of Presentation    insurance and reinsurance. Trenwick America Corporation's
                   ultimate parent is Trenwick Group Ltd., which is a publicly
                   traded Bermuda holding company. Prior to September 27, 2000,
                   Trenwick America Corporation's parent was Trenwick Group Inc.

                   On September 27, 2000, Trenwick Group Ltd., a newly formed
                   company, acquired all of the assets and liabilities of
                   Trenwick Group Inc. and all of the issued and outstanding
                   common shares of LaSalle Re Holdings Limited and LaSalle Re
                   Limited in exchange for Trenwick Group Ltd. common shares.
                   Trenwick Group Inc. then distributed the shares received from
                   Trenwick Group Ltd. to its shareholders in a liquidating
                   distribution. Substantially all of Trenwick Group Inc.'s
                   assets and liabilities were transferred from Trenwick Group
                   Inc. to Chartwell Re Holdings Corporation (then a
                   wholly-owned subsidiary of Trenwick Group Inc.) immediately
                   prior to the Trenwick/LaSalle business combination. Chartwell
                   Re Holdings Corporation then sold most of its United Kingdom
                   and Bermuda subsidiaries to Trenwick Group Inc. at fair
                   value. Immediately after the Trenwick/LaSalle business
                   combination, Chartwell Re Holdings Corporation merged with
                   and into Trenwick America Corporation, with Trenwick America
                   Corporation as the surviving corporation. As a result of such
                   merger, Trenwick America Corporation acquired Chartwell
                   Insurance Company, The Insurance Corporation of New York and
                   Dakota Specialty Insurance Company. The Trenwick/LaSalle
                   business combination and its related transactions were
                   completed on September 27, 2000. On October 27, 1999,
                   Trenwick Group Inc. became the ultimate parent of Chartwell
                   Insurance Company, The Insurance Corporation of New York and
                   Dakota Specialty Insurance Company through its acquisition of
                   Chartwell Re Corporation. More details of these business
                   combinations are disclosed in Note 2.

                   Trenwick America Corporation's principal subsidiaries
                   underwrite specialty insurance and reinsurance through two
                   business platforms: Trenwick America Reinsurance Corporation,
                   which underwrites treaty reinsurance on United States
                   property and casualty risks, including reinsurance business
                   previously written by Chartwell Re Corporation; and
                   Canterbury Financial Group Inc. which underwrites specialty
                   insurance through The Insurance Corporation of New York,
                   Dakota Specialty Insurance Company and Chartwell Insurance
                   Company. More details on business segments are disclosed in
                   Note 3.

                   Basis of Presentation
                   We include the accounts of Trenwick America Corporation and
                   its subsidiaries in these financial statements after
                   elimination of significant intercompany accounts and
                   transactions. We have reclassified certain items in prior
                   year financial statements to conform to current presentation.

                   We prepared these financial statements in conformity with
                   accounting principles that are generally accepted in the
                   United States of America, sometimes referred to as U.S. GAAP.
                   In preparing these financial statements, we are required to
                   make estimates and assumptions that affect the reported
                   amounts of assets and liabilities and disclosure of
                   contingent assets and liabilities at the date of the
                   financial statements, as well as the reported amounts of
                   revenues and expenses during the reporting periods. Actual
                   amounts will differ from these estimates.


                                      F-5
<PAGE>


                   As discussed in Note 2, the business combination between
                   LaSalle Re Holdings Limited and Trenwick Group Inc. was
                   accounted for as a purchase by LaSalle Re Holdings Limited of
                   the minority interest in LaSalle Re Limited and of Trenwick
                   Group Inc. Accordingly, the assets and liabilities of
                   Trenwick America Corporation have been adjusted to reflect
                   their fair value, after consideration of the purchase price,
                   as of September 27, 2000. In addition, a portion of the
                   goodwill resulting from the business combination has been
                   pushed down to Trenwick America Corporation and was reflected
                   in the consolidated balance sheet.

                   As a result of the reorganization described above, the United
                   Kingdom and Bermuda subsidiaries of Trenwick Group Inc., were
                   sold to Trenwick Group Ltd., and the remaining net
                   liabilities of Trenwick Group Inc., consisting primarily of
                   indebtedness and preferred capital securities, were assumed
                   by Trenwick America Corporation. These financial statements
                   present the reorganization at historical cost in a manner
                   similar to a pooling of interests business combination.
                   Accordingly, the accompanying financial statements at year
                   end 2001 and for the 2000 and 1999 years have been restated
                   to reflect the combined operating results, cash flows, and
                   financial position of the United States operations of
                   Trenwick Group Inc. for all periods in which the companies
                   were under the common control of Trenwick Group Inc.

                   Other significant accounting policies are presented in
                   italics within the appropriate footnotes.

Note 2             Trenwick/LaSalle Business Combination
Business           On December 19, 1999, LaSalle Re Holdings Limited, LaSalle
Combinations       Re Limited and Trenwick Group Inc. signed a definitive
                   agreement to combine under a new holding company, Trenwick
                   Group Ltd. On September 27, 2000, following shareholder and
                   regulatory approval, the newly formed Trenwick Group Ltd.
                   issued common shares on a one-for-one, tax-free basis to
                   the former shareholders of LaSalle Re Holdings Limited, the
                   minority shareholders of LaSalle Re Limited, then a 77.5%
                   owned subsidiary of LaSalle Re Holdings Limited, and the
                   former shareholders of Trenwick Group Inc.

                   We accounted for the Trenwick/LaSalle business combination as
                   a purchase by LaSalle Re Holdings Limited of the minority
                   interest in LaSalle Re Limited and of Trenwick Group Inc.
                   Under the purchase basis of accounting, we allocated the
                   purchase price to the identifiable assets acquired and
                   liabilities assumed, based on the estimated fair values at
                   the date of acquisition and recorded the unallocated excess
                   as goodwill. A portion of the goodwill resulting from the
                   business combination ($33,976 at December 31, 2000) was
                   pushed down to Trenwick America Corporation and was reflected
                   in the consolidated balance sheet. During the 2001 year, we
                   refined our estimates used in the calculation of the fair
                   value of the net assets acquired in this business
                   combination, principally for the deferred income tax asset,
                   and recorded an additional $2,008 of goodwill has been pushed
                   down to the consolidated balance sheet of Trenwick America
                   Corporation. Pending changes in accounting for goodwill and
                   its amortization are described in Note 11.

                   Trenwick Group Inc./Chartwell Re Corporation Merger
                   On October 27, 1999, Trenwick Group Inc. issued common shares
                   in exchange for all of the common shares of Chartwell Re
                   Corporation, a publicly held insurer and reinsurer. The
                   merger of Chartwell Re Corporation with and into Trenwick
                   Group Inc. was accounted for as a purchase by Trenwick Group
                   Inc. of Chartwell Re Corporation, and the $153,315 excess of
                   the purchase price ($231,326) over the fair value of
                   Chartwell Re Corporation's identifiable net assets ($78,011)
                   was recorded as goodwill. On September 27, 2000, the
                   unamortized goodwill resulting from this transaction was
                   eliminated in connection with the Trenwick/LaSalle business
                   combination.


                                      F-6
<PAGE>


Note 3             Trenwick America Corporation conducts its specialty insurance
Segment            and reinsurance business in the following two business
Information        segments:

                   o   Treaty reinsurance, principally through Trenwick America
                       Reinsurance Corporation; and

                   o   Specialty insurance, principally through The Insurance
                       Corporation of New York and Dakota Specialty Insurance
                       Company

                   The business segment financial information excludes the
                   Excess Casualty Reinsurance Association Pool ("ECRA Pool")
                   runoff. The business segment financial information also
                   excludes affiliate transactions, the most significant of
                   which are a reinsurance contract with a U.K. affiliate of
                   Trenwick America Corporation that writes international
                   specialty insurance and reinsurance business and a loss
                   sharing agreement with some of Trenwick America
                   Corporation's U.K. affiliates, which provides for the
                   allocation of recoverables from reinsurance purchased in
                   connection with the Trenwick/Chartwell merger.

                   Business segment financial information for Trenwick America
                   Corporation at year end 2001 and 2000 and for each of the
                   years 2001, 2000, and 1999 follow:

<TABLE>
<CAPTION>
                   Total assets:                                      2001         2000
                                                                  ----------    ----------
<S>                                                               <C>           <C>
                   Treaty reinsurance                             $1,634,470    $1,782,808
                   Specialty insurance                               572,138       376,994
                   Unallocated                                       122,497       125,220
                                                                  ----------    ----------
                   Total assets                                   $2,329,105    $2,285,022
                                                                  ==========    ==========

<CAPTION>
                                                        2001          2000         1999
                                                      ---------    ---------    ---------
<S>                                                   <C>          <C>          <C>
                   Total revenues:
                   Treaty reinsurance                 $ 335,867    $ 328,478    $ 217,322
                   Specialty insurance                   97,178       54,758       12,234
                   Affiliate transactions                10,879          173           --
                   Unallocated                            5,358        3,574          160
                                                      ---------    ---------    ---------
                   Total revenues                     $ 449,282    $ 386,983    $ 229,716
                                                      =========    =========    =========

<CAPTION>
                                                        2001          2000         1999
                                                      ---------    ---------    ---------
<S>                                                   <C>          <C>          <C>
                   Net income (loss)
                   Treaty reinsurance                 $   4,863    $   7,404    $   7,473
                   Specialty insurance                       44        2,339        1,680
                   Affiliate transactions                 5,417      (14,817)          --
                   ECRA pool runoff                      (7,495)          --           --
                   Unallocated interest expense and
                     subsidiary preferred
                     share dividends                    (30,824)     (35,540)     (18,362)
                   Other unallocated                      8,470        3,642         (686)
                                                      ---------    ---------    ---------
                   Net loss                           $ (19,525)   $ (36,972)   $  (9,895)
                                                      =========    =========    =========
</TABLE>

                   Revenues from transactions between operating segments, which
                   are not material, have been eliminated in consolidation.


                                      F-7
<PAGE>


Note 4             Premiums
Underwriting       We accrue insurance and reinsurance premiums on contracts on
Activities         an estimated basis throughout the term of such contracts. For
                   retrospectively rated and other experience rated reinsurance
                   contracts, we estimate and accrue premiums based on the
                   difference between total costs before and after the
                   experience under the contract (the with-and-without method).
                   We make premium estimates based on statistical and other data
                   and record subsequent adjustments in the period in which they
                   become known. We account for short-duration contracts as
                   reinsurance when they provide indemnification against loss or
                   liability relating to insurance risk and as deposits when
                   they do not.

                   We earn insurance and reinsurance premiums (net of
                   reinsurance ceded) on a pro-rata basis over the related
                   contract period. We record unearned premium income for the
                   portion of premiums applicable to the unexpired portion of
                   premium coverage with renewal dates later than year-end. We
                   compute premium income for direct business and excess of loss
                   reinsurance using pro-rata methods; for proportional
                   business, we compute premium income based on reports received
                   from ceding companies. We record reinsurance premiums as
                   prepaid expenses and amortize them over the contract period
                   in proportion to the amount of reinsurance protection
                   provided. Where the contract provides for return premiums, we
                   make accruals based on loss experience through the date of
                   the balance sheet.

                   The components of premiums written and earned follow:

                                               2001         2000         1999
                                            ---------    ---------    ---------
                   Assumed premiums written $ 350,134    $ 338,794    $ 210,921

                   Direct premiums written    291,433      187,545       38,088
                                            ---------    ---------    ---------
                   Gross premiums written     641,567      526,339      249,009
                   Ceded premiums written    (210,160)    (221,027)     (77,624)
                                            ---------    ---------    ---------
                   Net premiums written     $ 431,407    $ 305,312    $ 171,385
                                            =========    =========    =========

                   Assumed premiums earned  $ 321,882    $ 352,607    $ 255,164
                   Direct premiums earned     250,047      165,728       10,343
                                            ---------    ---------    ---------
                   Gross premiums earned      571,929      518,335      265,507
                   Ceded premiums earned     (191,641)    (207,544)     (77,622)
                                            ---------    ---------    ---------
                   Net premiums earned      $ 380,288    $ 310,791    $ 187,885
                                            =========    =========    =========

                   Policy acquisition costs
                   Policy acquisition costs primarily consist of commissions and
                   brokerage expenses that vary with, and are primarily related
                   to, the acquisition of business. We defer and amortize policy
                   acquisition costs over the period in which the related
                   premiums are earned. We periodically review deferred policy
                   acquisition costs to determine that they do not exceed
                   recoverable amounts after allowing for anticipated investment
                   income.

                   The components of policy acquisition costs are as follows:

<TABLE>
<CAPTION>
                                                               2001          2000         1999
                                                             ---------    ---------    ---------
<S>                                                          <C>          <C>          <C>
                   Gross policy acquisition costs deferred   $ 194,429    $ 156,910    $ 106,617
                   Ceded policy acquisition costs deferred     (63,080)     (65,634)     (27,119)
                                                             ---------    ---------    ---------
                   Net policy acquisition costs deferred     $ 131,349    $  91,276    $  79,498
                                                             =========    =========    =========

                   Policy acquisition costs expensed         $ 122,213    $  92,980    $  62,550
                                                             =========    =========    =========
</TABLE>

                   Trenwick America Corporation earned commissions on cessions
                   to retrocessionaires of $152,564, $64,883, and $18,928 for
                   the 2001, 2000 and 1999 years, respectively.


                                      F-8
<PAGE>


                   Claims and Claims Expenses
                   We record claims and claims expenses as incurred, at
                   management's best estimate, in order to match claims and
                   claims expense costs with premiums over the contract periods.
                   The amount provided for unpaid claims and claims expenses
                   consists of any unpaid reported claims and claims expenses
                   and estimates for incurred but not reported claims and claims
                   expenses, net of salvage and subrogation. We developed the
                   estimates for claims and claims expenses incurred but not
                   reported based on historical claims and claims expense
                   experience and an actuarial evaluation of expected claims and
                   claims expense experience. In connection with the
                   Trenwick/LaSalle business combination, Trenwick America
                   Corporation adopted LaSalle Re Holdings Limited's policy of
                   using tabular reserving for workers' compensation indemnity
                   liabilities that are considered fixed and determinable, and
                   discounted such reserves using an interest rate of 3.5%.
                   Insurance liabilities are based on estimates, and the
                   ultimate liability will vary from our estimates. Adjustments
                   to these estimates are reflected in income when known.

                   The components of net claims and claims expenses incurred
                   follow:

<TABLE>
<CAPTION>
                                                                  2001         2000        1999
                                                               ---------    ---------    ---------
<S>                                                            <C>          <C>          <C>
                   Gross claims and claims expenses incurred   $ 430,702    $ 455,093    $ 268,066
                   Ceded claims and claims expenses incurred    (125,214)    (179,050)    (120,884)
                                                               ---------    ---------    ---------
                   Net claims and claims expenses incurred     $ 305,488    $ 276,043    $ 147,182
                                                               =========    =========    =========
</TABLE>


                                      F-9
<PAGE>


                   The following table presents a reconciliation of the
                   beginning and ending balances of net liabilities for unpaid
                   claims and claims expenses. The gross liabilities for unpaid
                   claims and claims expenses at period ends are as reflected in
                   the balance sheet. The net liabilities for unpaid claims and
                   claims expenses are after deductions for reinsurance
                   recoverable on unpaid claims and claims expenses, also as
                   reflected in the balance sheet.

<TABLE>
<CAPTION>
                                                                          2001          2000            1999
                                                                      -----------    -----------    -----------
<S>                                                                   <C>            <C>            <C>
                   Net unpaid claims and claims expenses,
                      beginning of year                               $   760,071    $   841,381    $   352,050
                                                                      -----------    -----------    -----------
                   Net unpaid claims and claims
                     expenses of companies acquired                            --             --        564,829
                                                                      -----------    -----------    -----------
                   Provision, net of reinsurance recoverable:
                      Claims incurred in the current year                 292,933        251,139        130,993
                      Claims incurred prior to the current year            22,448         32,496         16,189
                                                                      -----------    -----------    -----------
                      Total provision                                     315,381        283,635        147,182
                                                                      -----------    -----------    -----------
                   Payments, net of reinsurance:
                      Claims incurred in the current year                 (64,085)       (66,574)       (38,320)
                      Claims incurred prior to the current year          (250,649)      (279,717)      (173,546)
                                                                      -----------    -----------    -----------
                      Total payments                                     (314,734)      (346,291)      (211,866)
                                                                      -----------    -----------    -----------
                   Adoption of accounting policy for workers'
                      compensation discounting                                 --         (1,135)            --
                                                                      -----------    -----------    -----------
                   Effect of loss sharing agreement with affiliates        28,570        (17,756)       (10,814)
                                                                      -----------    -----------    -----------
                   Foreign currency translation adjustment to net
                      unpaid claims and claims expenses                        88            237             --
                                                                      -----------    -----------    -----------
                   End of year:
                      Net unpaid claims and claims expenses               789,376        760,071        841,381
                      Reinsurance recoverable on unpaid claims
                         and claims expenses                              610,906        611,954        502,787
                                                                      -----------    -----------    -----------
                      Gross unpaid claims and claims expenses         $ 1,400,282    $ 1,372,025    $ 1,344,168
                                                                      ===========    ===========    ===========
</TABLE>

                   Unpaid claims and claims expenses at year end 2001 and 2000
                   includes $11,822 and $24,479 of claims and claims expenses
                   payable, respectively, which are not reflected in the
                   reconciliation of beginning and ending balances of net
                   liabilities for unpaid claims and claims expenses presented
                   above. In addition, the 2001 and 2000 provisions for claims
                   incurred prior to the current year presented in the
                   reconciliation above do not include the benefits of $9,893
                   and $7,592, respectively related to the reduction of the
                   contingent interest note. Workers' compensation indemnity
                   reserves subject to discounting totaled $3,998 and $3,883 at
                   year end 2001 and 2000, respectively.

                   In the 2001 year, Trenwick America Corporation recorded a net
                   increase of $12,555 in estimates for claims occurring in
                   prior accident years. The increase in 2001 includes $15,654
                   of reserve strengthening related to the treaty reinsurance
                   segment's liability business, which was underwritten prior to
                   2001 and $11,530 related to prior participation in the ECRA
                   Pool. In addition, $13,940 of the loss reserve strengthening
                   related to the specialty program insurance segment. This
                   reserve strengthening was offset in part by a reduction in
                   claims and claims expenses of $28,570 incurred related to a
                   loss sharing agreement with some of Trenwick America
                   Corporation's U.K. affiliates, as described below.


                                      F-10
<PAGE>


                   In 2000, the net estimates of prior year loss reserves for
                   Trenwick America Reinsurance Corporation, Chartwell Insurance
                   Company and The Insurance Corporation of New York increased
                   by approximately $13,171, $9,133 and $2,600, respectively.
                   The increases for Trenwick America Reinsurance Corporation
                   and Chartwell Insurance Company's casualty reinsurance
                   business reflect a continued deterioration in market
                   conditions since 1997. The increase for The Insurance
                   Corporation of New York relates primarily to unfavorable
                   development two specialty insurance programs that underwrite
                   casualty and commercial auto business.

                   In 1999, net estimates of prior year losses increased by
                   approximately $16,189. The increase was due to adverse
                   development of Trenwick America Reinsurance Corporation's
                   reserves for the 1997 and 1998 accident years.

                   Inflation
                   Inflation raises the cost of economic losses and non-economic
                   damages covered by insurance contracts and, therefore is a
                   factor in determining effective rates of reinsurance. The
                   methods used to estimate individual case reserves and
                   reserves for claims incurred but not yet reported implicitly
                   incorporate the effects of inflation in the projection of
                   ultimate losses. Due to the inherent uncertainties of
                   estimating unpaid claims and claims expenses, actual claims
                   and claims expenses may deviate, perhaps substantially, from
                   estimates reflected in these financial statements. Management
                   believes that its claim estimation methods are reasonable and
                   prudent and that its unpaid claims and claims expenses at
                   year end 2001 are adequate.

                   Latent Injury and Toxic Tort Claims
                   The balance of unpaid claims and claims expenses also
                   includes provisions for latent injury or toxic tort claims
                   that cannot be estimated with traditional techniques. Due to
                   inconsistent court decisions in federal and state
                   jurisdictions and the wide variation among insureds with
                   respect to underlying facts and coverage, uncertainty exists
                   with respect to these claims as to liabilities of ceding
                   companies and, consequently, reinsurance coverage. With the
                   exception of an insurer acquired in the Trenwick/ Chartwell
                   merger, Trenwick America Corporation's exposure to such
                   latent losses is not expected to be significant due to its
                   relatively recent entry into the reinsurance business, its
                   low historical levels of premium volume prior to the
                   application of exclusions for asbestos and environmental
                   liabilities and its retrocessional programs. To the extent
                   that there is adverse development in that insurer's loss
                   reserves, including its reserves for latent losses, Trenwick
                   America Corporation's obligation under certain of its
                   indebtedness is reduced. More details on that indebtedness
                   are included in Note 6.

                   The estimate of net unpaid claims and claims expenses for
                   asbestos and environmental claims at year end 2001 and 2000
                   was $91,050 and $70,547, respectively, comprising gross
                   unpaid claims and claims expenses of $118,688 and $99,474,
                   net of reinsurance recoverable on unpaid claims and claims
                   expenses of $27,638 and $28,927. The above figures include
                   liabilities emanating from Trenwick Group Ltd.'s
                   participation in the ECRA Pool.

                   Reinsurance
                   We enter into reinsurance and retrocessional agreements to
                   reduce our exposure on individual risks, catastrophic losses
                   and other large losses in all lines of business. We classify
                   reinsurance contracts which do not meet insurance accounting
                   risk transfer requirements as deposits. We treat these
                   deposits as financing transactions and credit or charge with
                   interest income or interest expense to them according to
                   contract terms.

                   Trenwick America Reinsurance Corporation's reinsurance
                   treaties consist principally of property catastrophe
                   reinsurance treaties. Canterbury Financial Group Inc.
                   purchases specific reinsurance programs for each of the
                   programs underwritten by its insurance companies.


                                      F-11
<PAGE>


                   From 1989 to 1999, Trenwick America Reinsurance Corporation
                   purchased aggregate excess of loss ratio treaties from
                   several reinsurers. These facilities provided Trenwick
                   America Reinsurance Corporation with a layer of protection
                   against adverse results from its domestic casualty business
                   in excess of specified loss ratios. Trenwick America
                   Reinsurance Corporation did not purchase an aggregate excess
                   of loss ratio treaty after 1999. Interest expense on funds
                   held under these facilities is recorded as an investment
                   expense, and is included in the funds held offset at year end
                   2001 and 2000.

                   At the time of the closing of the Trenwick/Chartwell merger
                   (October 27, 1999), Chartwell Re Corporation purchased a
                   reinsurance policy providing for up to $100,000 in coverage
                   in order to indemnify Trenwick Group Inc. against
                   unanticipated increases in Chartwell Re Corporation's
                   reserves for business written on or before the date the
                   merger was completed. Amounts recoverable under this loss
                   sharing agreement are presented gross in the balance sheet as
                   reinsurance recoverable balances ($91,970 at year end 2001
                   and 2000) and as miscellaneous accounts receivable, included
                   in other assets ($8,030 at year end 2001 and 2000). The
                   related benefit for losses ceded to the agreement has been
                   reflected as a reduction to claims and claims expenses
                   incurred ($28,570, $27,754 and $35,646 during 2001, 2000 and
                   1999, respectively) and the benefit related to other
                   underwriting balances was reflected as a reduction to
                   underwriting expenses ($8,030 for 1999). The benefit
                   recognized through income is limited to the extent of any
                   losses incurred by Trenwick America Corporation under the
                   agreement. Any excess benefit from the agreement is directly
                   reflected in net capital transactions with affiliates
                   included in common stockholder's equity. In addition, as part
                   of the merger, Chartwell Re Corporation commuted several
                   aggregate stop-loss contracts.

                   Reinsurance Recoverable Balances, Net
                   The components of reinsurance recoverable balances, net at
                   year end 2001 and 2000 are as follows:

<TABLE>
<CAPTION>
                                                                    2001       2000
                                                                  --------   --------
<S>                                                               <C>        <C>
                   Paid claims                                    $ 69,154   $ 38,209
                   Unpaid claims and claims expenses, net of
                     funds held offset of $135,859 and $139,000    475,048    472,954
                                                                  --------   --------
                   Reinsurance recoverable balances, net          $544,202   $511,163
                                                                  ========   ========
</TABLE>

                   Reinsurance recoverable balances at year end 2001 and 2000
                   are net of allowances for doubtful accounts of $17,255 and
                   $14,353, respectively, which includes $12,707 and $10,337 for
                   paid claims and $4,548 and $4,016 for unpaid claims and
                   claims expenses, respectively.

                   Reinsurance agreements provide for recovery of a portion of
                   certain claims and claims expenses from reinsurers and
                   retrocessionaires. Trenwick America Corporation remains
                   liable in the event that the reinsurer or retrocessionaire is
                   unable to meet its obligations; however, Trenwick America
                   Corporation holds collateral under some of these agreements.
                   Letters of credit, trust accounts and funds withheld in the
                   aggregate amount of $354,011 (including interest) have been
                   arranged in favor of Trenwick America Corporation
                   collateralizing reinsurance recoverables with respect to
                   certain reinsurers and retrocessionaires.


                                      F-12
<PAGE>


Note 5             Debt and Equity Security Investments
Investing          We have classified debt securities as "available for sale"
Activities         and reported them as well as equity securities, at estimated
                   fair value principally using quoted market prices or broker
                   dealer quotes. Included in equity securities are limited
                   partnerships in which we hold greater than a 3% interest, and
                   which are recorded at equity value.

                   Fair value and amortized cost or cost of debt and equity
                   securities at year end 2001 and 2000 follow:

<TABLE>
<CAPTION>
                                                                            2001                     2000
                                                                  -----------------------   ---------------------
                                                                  Fair Value      Cost      Fair Value     Cost
                                                                  ----------   ----------   ----------   --------
<S>                                                               <C>          <C>          <C>          <C>
                   U.S. federal and U.K. government
                     securities, including agencies               $  147,827   $  144,580   $  136,396   $133,447
                   Other foreign government securities                19,485       19,055       18,223     17,908
                   U.S. municipal government securities                  125          125      249,700    244,234
                   Mortgage and other asset-backed securities        495,799      481,410      337,184    330,204
                   Corporate and other debt securities               391,282      384,678      264,658    263,847
                   Debt securities fair value and                 ----------   ----------   ----------   --------
                     amortized cost                               $1,054,518   $1,029,848   $1,006,161   $989,640
                                                                  ==========   ==========   ==========   ========
                   Publicly traded common and
                     preferred stock                              $   14,619   $    7,865   $   82,919   $ 84,943
                   Limited partnerships                                9,545        9,545(1)    19,722     19,722(1)
                   Private placement stock                                --           --        1,000      1,000
                                                                  ----------   ----------   ----------   --------
                   Equity securities fair value and cost          $   24,164   $   17,410   $  103,641   $105,665
                                                                  ==========   ==========   ==========   ========
</TABLE>

                   (1) Amounts represent cost, adjusted for changes in equity of
                       the limited partnerships.

                   Gross unrealized gains and losses on debt and equity
                   securities at year end 2001 and 2000 follow:

<TABLE>
<CAPTION>
                                                                       2001                2000
                                                                -----------------    -----------------
                                                                 Gains    Losses      Gains    Losses
                                                                -------   -------    -------   -------
<S>                                                             <C>       <C>        <C>       <C>
                   U.S. federal and U.K. government
                     securities, including agencies             $ 4,486   $(1,239)   $ 2,949   $    --
                   Other foreign government securities              663      (233)       315        --
                   U.S. municipal government securities              --        --      5,466        --
                   Mortgage and other asset-backed securities    14,709      (320)     7,097      (117)
                   Corporate and other debt securities           12,449    (5,845)     5,000    (4,189)
                                                                -------   -------    -------   -------
                   Debt securities gross gains and losses       $32,307   $(7,637)   $20,827   $(4,306)
                                                                =======   =======    =======   =======
                   Equity securities gross gains and losses     $ 6,754   $    --    $ 3,160   $(5,184)
                                                                =======   =======    =======   =======
</TABLE>

                   The fair value and amortized cost at year end 2001 are shown
                   below by contractual maturity periods except mortgage-backed
                   and asset-backed securities, which are included in the table
                   based on expected maturity dates. Actual maturities will
                   differ from contractual maturities because borrowers
                   generally have the right to prepay obligations.


                                      F-13
<PAGE>

<TABLE>
<CAPTION>
                                                            Fair Value   Amortized Cost
                                                            ----------   --------------
<S>                                                         <C>            <C>
                   Due in one year or less                  $   77,413     $   75,619
                   Due after one year through five years       496,049        477,346
                   Due after five years through ten years      349,280        346,124
                   Due after ten years                         131,776        130,759
                                                            ----------     ----------
                   Total maturities of debt securities      $1,054,518     $1,029,848
                                                            ==========     ==========
</TABLE>

                   Net Investment Income and Net Investment Gains (Losses)
                   We recognize investment income, consisting principally of
                   interest and dividends, when earned, net of investment
                   expenses. In computing interest income, we amortize premiums
                   and accrete discounts on debt securities utilizing the
                   interest method. We adjust the amortization and accretion for
                   mortgage-backed and other asset-backed securities, when
                   sufficient information exists to estimate the probability and
                   timing of their prepayments, to the amount that would have
                   existed had the new effective yield been applied since the
                   acquisition of the security. We classify imputed interest on
                   the funds held offset to reinsurance recoverable in
                   investment expense.

                   We generally limit investments in debt securities that are
                   rated below investment grade, as these investments are
                   subject to a higher degree of credit risk than investment
                   grade securities. We monitor the creditworthiness of the
                   portfolio, including below investment grade securities, and
                   we write down investments when fair values decline for
                   reasons other than changes in interest rates or other
                   perceived temporary conditions. We determine realized gains
                   or losses on disposition of investments on the basis of
                   specific identification.

                   Sources of net investment income follow:

<TABLE>
<CAPTION>
                                                                2001        2000        1999
                                                              --------    --------    --------
<S>                                                           <C>         <C>         <C>
                   Debt securities interest                   $ 71,212    $ 68,264    $ 49,468
                   Equity securities dividends and earnings      5,255       7,063       2,146
                   Cash and cash equivalents interest            5,689       6,179       1,286
                                                              --------    --------    --------
                   Gross investment income                      82,156      81,506      52,900
                   Imputed interest expense                    (11,342)    (11,940)    (10,636)
                   Other investment expenses                    (2,773)     (2,965)     (1,973)
                                                              --------    --------    --------
                   Net investment income                      $ 68,041    $ 66,601    $ 40,291
                                                              ========    ========    ========
</TABLE>

                   Net realized gains (losses) on sales of investments and their
                   effect on net income follow:

<TABLE>
<CAPTION>
                                                              2001       2000       1999
                                                            --------    -------    -------
<S>                                                         <C>         <C>        <C>
                   Debt security realized gains             $ 11,749    $ 2,124    $ 2,558
                   Equity security realized gains                997      7,143      4,896
                   Debt security realized losses              (7,872)    (2,423)    (6,483)
                   Equity security realized losses            (6,740)       (76)        --
                                                            --------    -------    -------
                   Net realized investment gains (losses)     (1,866)     6,768        971
                   Applicable income taxes (benefit)            (653)     2,369        288
                                                            --------    -------    -------
                   Net realized investment gains (losses)
                     included in net income                 $ (1,213)   $ 4,399    $   683
                                                            ========    =======    =======
</TABLE>

                   During 2001 and 1999, Trenwick America Corporation wrote down
                   the fair value of certain debt and equity securities by
                   $3,441 and $5,179, respectively, and reflected the writedown
                   as realized losses of investments to recognize declines in
                   value that were other than temporary. Trenwick America
                   Corporation did not write down the value of any investments
                   during 2000.


                                      F-14
<PAGE>


                   Net unrealized gains (losses) on investments and their effect
                   on other comprehensive income (loss) follow:

<TABLE>
<CAPTION>
                                                                       2001       2000       1999
                                                                     --------    -------   --------
<S>                                                                  <C>         <C>       <C>
                   Debt securities net gains (losses)                $ 12,088    $27,431   $(39,932)
                   Equity securities net gains                          3,035      1,972      2,195
                                                                     --------    -------   --------
                   Net investment gains (losses) included
                     in comprehensive income before income taxes       15,123     29,403    (37,737)
                   Applicable income taxes (benefit)                    5,293     10,291    (13,266)
                                                                     --------    -------   --------
                   Net investment gains (losses) included in
                     comprehensive income (loss)                        9,830     19,112    (24,471)
                   Less net realized investment gains (losses)
                     included in net income (loss)                     (1,213)     4,399        683
                                                                     --------    -------   --------
                   Net unrealized investment gains (losses)
                     included in other comprehensive income (loss)   $ 11,043    $14,713   $(25,154)
                                                                     ========    =======   ========
</TABLE>

                   Net investment gains (losses) included in other comprehensive
                   income (loss) in 2000 are net of fair value adjustments of
                   $1,875 on debt and equity securities recorded in connection
                   with the Trenwick/LaSalle business combination.

                   Net Unrealized Investment Gains (Losses)

                   We calculate unrealized investment gains (losses) as the
                   difference between recorded values (fair value) and amortized
                   cost or cost. We include net unrealized investment gains and
                   losses, net of applicable deferred income taxes, in common
                   stockholder's equity as accumulated other comprehensive
                   income.

                   Components of net unrealized investment gains (losses) at
                   year end 2001 and 2000 follow:

<TABLE>
<CAPTION>
                                                                       2001      2000
                                                                     -------   --------
<S>                                                                  <C>       <C>
                   Debt securities net unrealized gains              $24,670   $ 16,521
                   Equity securities net unrealized gains (losses)     6,754     (2,024)
                                                                     -------   --------
                   Net unrealized gains before income taxes           31,424     14,497
                   Applicable deferred income taxes                   10,958      5,074
                                                                     -------   --------
                   Net unrealized investment gains                   $20,466   $  9,423
                                                                     =======   ========
</TABLE>

Note 6             Indebtedness and Minority Interest
Financing
Activities         We have recorded indebtedness and other mandatorily
                   redeemable obligations at their fair value at the date of the
                   Trenwick/LaSalle business combination or at principal amounts
                   advanced subsequent thereto. We accrete the discount on these
                   obligations utilizing the interest method. For our contingent
                   interest note obligations, we adjust the principal amount of
                   the notes for any adverse development in the applicable
                   liability for claims and claims expenses.

                   Carrying value and fair value of indebtedness and minority
                   interest at year end 2001 and 2000 are as follows:


                                      F-15
<PAGE>

<TABLE>
<CAPTION>
                                                            2001                 2000
                                                    -------------------   -------------------
                                                    Carrying     Fair     Carrying     Fair
                                                      Value     Value       Value     Value
                                                    --------   --------   --------   --------
<S>                                                 <C>        <C>        <C>        <C>
                   Senior notes                     $ 73,920   $ 63,750   $ 73,143   $ 73,155
                   Senior credit facility            195,035    195,035    181,379    181,379
                   Contingent interest notes          19,923     19,923     28,767     28,767
                                                    --------   --------   --------   --------
                    Total indebtedness               288,878    278,708    283,289    283,301
                   Mandatorily redeemable
                     preferred capital securities     86,973     55,000     87,059     84,779
                                                    --------   --------   --------   --------
                   Total indebtedness and
                     minority interest              $375,851   $333,708   $370,348   $368,080
                                                    ========   ========   ========   ========
</TABLE>

                   Future Minimum Principal Payments on Indebtedness
                   Future minimum principal payments on indebtedness and
                   minority interest at year end 2001 follow: 2002, $43,883;
                   2003, $128,635; 2004, $63,386; 2005, $34,131; 2006, $1,000
                   and thereafter $110,000.

                   Senior Notes
                   The senior notes, with a par value of $75,000, are due April
                   1, 2003, and are not subject to redemption prior to maturity.
                   They are unsecured obligations and rank senior in right of
                   payment to all existing and future subordinated indebtedness
                   of Trenwick America Corporation, Trenwick Group Ltd.'s U.S.
                   holding company. Under the terms of the notes, Trenwick
                   America Corporation is not restricted from incurring
                   indebtedness, but is subject to limits on its ability to
                   incur secured indebtedness for borrowed money. Interest on
                   the notes is payable semi-annually at an annual rate of 6.7%;
                   interest charged to operations is at the imputed rate of
                   7.9%.

                   In connection with the Trenwick/Chartwell merger as discussed
                   in Note 1, Trenwick America Corporation indirectly assumed
                   the obligations of its affiliate, Chartwell Re Holdings
                   Corporation under the 10.25% senior notes. During the first
                   quarter of 2000, these notes were redeemed and a loss of
                   $825, net of income taxes of $445, was recorded by Trenwick
                   America Corporation.

                   Senior Credit Facility
                   Concurrent with the Trenwick/LaSalle business combination,
                   Trenwick Group Ltd.'s U.S. and U.K. holding companies entered
                   into an amended and restated $490,000 credit agreement with
                   various lending institutions. The agreement consists of both
                   a $260,000 revolving credit facility and a $230,000 letter of
                   credit facility. Trenwick Group Ltd's U.S. holding company,
                   Trenwick America Corporation, is the primary obligor with
                   respect to the revolving credit facility, and Trenwick Group
                   Ltd.'s U.K. holding company, Trenwick Holdings Limited, is
                   the primary obligor with respect to the letter of credit
                   facility. Guarantees are provided by LaSalle Re Holdings
                   Limited and Trenwick Group Ltd. with respect to both the U.S.
                   and U.K. holding companies' obligations and additionally by
                   the U.S. holding company with respect to the U.K. holding
                   company's obligations.

                   On September 30, 2001, the U.S. holding company converted the
                   outstanding borrowings under the revolving credit facility to
                   a four year term loan facility. The applicable interest rate
                   on the term loan is generally 2.5% above the London Interbank
                   Offered Rate and was 4.7% at year end 2001. The scheduled
                   principal repayments of the $195,035 outstanding at year end
                   2001 are as follows: 2002, $43,883; 2003, $53,635; 2004,
                   $63,386; and 2005, $34,131. Additionally, the U.S. holding
                   company is obligated to repay a portion or all of the term
                   loan in the event of equity issuances, asset sales and debt
                   issuances by Trenwick Group Ltd. or its subsidiaries.

                   The credit agreement also provides for a letter of credit
                   facility to be issued for the account of Lloyd's to support
                   the syndicate participations of Trenwick Group Ltd.'s
                   subsidiaries. At year end


                                      F-16
<PAGE>


                   2001, the letter of credit portion of the credit facility was
                   fully utilized at $230,000. Trenwick Group Ltd.'s letter of
                   credit facility is scheduled to expire in November 2002. In
                   the event that Trenwick Group Ltd. is unable to obtain a
                   replacement letter of credit facility, it will be required to
                   post sufficient collateral at Lloyd's or reduce or refrain
                   from underwriting at Lloyd's in the 2003 year of account.

                   The credit agreement contains general covenants and
                   restrictions as well as financial covenants relating to,
                   among other things, Trenwick Group Ltd.'s minimum interest
                   coverage, debt to capital leverage, minimum earned surplus,
                   maintenance of a minimum A.M. Best Company rating of A- and
                   tangible net worth. As of year end 2001, Trenwick Group Ltd.
                   was in compliance with the credit agreement covenants.

                   The financial covenants relating to interest coverage, risk
                   based capital and tangible net worth (each as defined by the
                   financial covenants) were revised downward in an amendment to
                   the credit agreement executed following the September 11th
                   terrorist attacks. The amendment set Trenwick Group Ltd.'s
                   minimum interest coverage ratio at 1.5 to 1 for the fourth
                   quarter of 2001, 2.0 to 1 for the first quarter of 2002 and
                   2.5 to 1 thereafter. Trenwick Group Ltd.'s interest coverage
                   ratio at December 31, 2001 was 2.0 to 1. The amendment
                   adjusted downward the minimum risk-based capital requirement
                   for Trenwick Group Ltd.'s subsidiary, Chartwell Insurance
                   Company, from 300% to 225% through December 31, 2002.
                   Thereafter, the minimum risk-based capital for Chartwell
                   Insurance Company returns to 300%. The risk based capital for
                   Chartwell Insurance Company as of December 31, 2001 was 257%.
                   The amendment lowered the base minimum tangible net worth
                   Trenwick Group Ltd. must maintain from $560,000 to $425,000
                   until the reporting of quarterly results of operations as of
                   March 31, 2002, which are due no later than May 15, 2002.
                   After May 15, 2002, Trenwick Group Ltd. minimum tangible net
                   worth reverts to $560,000. Trenwick Group Ltd.'s tangible net
                   worth as of December 31, 2001 was $428,000. If Trenwick Group
                   Ltd. is unable to meet the credit agreement's financial
                   covenants at the end of the first quarter of 2002, it may be
                   required to repay the outstanding indebtedness and
                   collateralize the outstanding letters of credit issued under
                   the credit agreement through additional financing, asset
                   sales, subsidiary dividends or similar transactions.

                   Contingent Interest Notes
                   The contingent interest notes were issued immediately prior
                   to Chartwell Re Corporation's acquisition of The Insurance
                   Corporation of New York to protect Chartwell Re Corporation
                   against the possibility of adverse development of that
                   insurer's liability for claims and claims expenses and
                   long-tail casualty exposures, which are more fully described
                   in Note 4. Trenwick Group Inc. assumed the obligations of
                   Chartwell Re Corporation under the notes in the
                   Trenwick/Chartwell merger, described in Note 2, and Trenwick
                   America Corporation subsequently assumed the obligations of
                   Trenwick Group Inc. under the notes in the Trenwick/LaSalle
                   business combination, also described in Note 2. The notes
                   were issued in an aggregate principal amount of $1,000 with
                   principal accruing interest at a rate of 8% per annum,
                   compounded annually. The interest will not be payable until
                   maturity or earlier redemption of the notes. In addition, the
                   notes entitle the holders thereof to receive at maturity, in
                   proportion to the principal amount of the notes held by them,
                   an aggregate of from $1,000, up to $55,000, in contingent
                   interest. Settlement of the notes may be made by payment of
                   cash or, under certain specified conditions, by delivery of
                   registered Trenwick Group Ltd. common shares. For purposes of
                   any settlement of the notes in Trenwick Group Ltd.'s common
                   shares, the value ascribed to each common share would be 85%
                   of an average of the closing sales prices of the common stock
                   prior to the settlement date. The notes mature on June 30,
                   2006.

                   At year end 2001, the notes were recorded at the present
                   value of the amount which is reasonably determined to be
                   payable at maturity. Trenwick America Corporation believes
                   that the applicable liability for unpaid claims and claims
                   expenses at year end 2001 is an appropriate estimate of


                                      F-17
<PAGE>


                   projected ultimate losses and loss adjustment expenses to be
                   paid and therefore, the amount of contingent interest on the
                   notes presently expected to be paid at maturity is $34,582.
                   During the 2001 and 2000 years, Trenwick America Corporation
                   recorded $9,893 and $7,592, respectively, of reductions to
                   its underwriting losses incurred in connection with adverse
                   development covered under the terms of the contingent
                   interest notes. The notes contain covenants which relate to
                   the maintenance of certain records and limitations on certain
                   indebtedness. At year end 2001 Trenwick Group Ltd. was in
                   compliance with those covenants.

                   Mandatorily Redeemable Preferred Capital Securities
                   The mandatorily redeemable preferred capital securities, with
                   a par value of $110,000, are obligations of a business trust
                   subsidiary of Trenwick America Corporation U.S. holding
                   company, Trenwick America Corporation. The capital securities
                   mature in 2037, require preferential cumulative semi-annual
                   cash distributions at an annual rate of 8.82% and are
                   guaranteed by the U.S. holding company, within certain
                   limits, as to distribution payments and liquidation or
                   redemption payments. Interest charged to operations on the
                   capital securities is at the imputed interest rate of 11.2%.

                   The business trust issuing the capital securities holds an
                   investment in subordinated debentures of the U.S. holding
                   company that have an aggregate principal amount of $113,403,
                   and interest from that investment is the source of cash
                   distributions on the capital securities. The capital
                   securities are subject to mandatory redemption in certain
                   circumstances pertaining to the U.S. holding company's
                   prepayment or repayment of its subordinated debentures held
                   by the trust. In the event of a default by the U.S. holding
                   company with respect either to making required payments on
                   the subordinated debentures or to its guarantee, holders of
                   the capital securities may institute a direct action against
                   the U.S. holding company. In the first quarter of 2001 and
                   the fourth quarter of 2000, a Trenwick Group Ltd. subsidiary
                   purchased $10,650 and $13,000, respectively, par value of the
                   capital securities in the open market for $8,462 and $9,902,
                   respectively.

                   Interest Expense and Subsidiary Preferred Share Dividends
                   We accrue and recognize interest expense and subsidiary
                   preferred share dividends when incurred. In computing
                   interest expense and dividends on capital securities, we
                   accrete the discount on certain obligations utilizing the
                   interest method. Reductions in the liability under the
                   contingent interest notes, which were previously included as
                   reductions to interest expense, have been reclassified as
                   reductions to the appropriate underwriting accounts for the
                   2001 and 2000 years.

                   Components of interest expense and dividends on preferred
                   capital securities for 2001, 2000 and 1999 were as follows:

                                                     2001      2000      1999
                                                   -------   -------   -------
                   Indebtedness interest expense   $19,825   $24,890   $ 8,479
                   Capital securities dividends      9,702     9,702     9,702
                   Commitment and other fees         1,809     1,177       369
                                                   -------   -------   -------
                   Total                           $31,336   $35,769   $18,550
                                                   =======   =======   =======

                   Interest on indebtedness of $15,563, $7,951 and $1,164 was
                   paid during 2001, 2000 and 1999, respectively. Dividends on
                   preferred capital securities of $2,426 were paid during 2001,
                   2000 and 1999.

                   Common Shares
                   Trenwick America Corporation has 1,000 shares of $1.00 par
                   value common shares authorized, 100 shares of which are
                   outstanding. All of the outstanding shares of Trenwick
                   America Corporation are held by a subsidiary of Trenwick
                   Group Ltd. Dividends of $9,500 were declared and paid by


                                      F-18
<PAGE>


                   Trenwick America Corporation to its parent company during
                   2000. No such dividends were paid in 2001 or 1999.


Note 7             Trenwick America Corporation and its subsidiaries are
Income             incorporated in the United States and are subject to federal
Taxation           and state income taxes imposed by U.S. authorities.

                   We provide income taxes based upon consolidated income
                   reported in the financial statements and the provisions of
                   currently enacted tax laws. We allocate income taxes to
                   operations, other comprehensive income and shareholders'
                   equity, as applicable.

                   We recognize current income tax assets and liabilities, for
                   estimated income taxes refundable or payable based on the
                   current year's income tax returns, and deferred income tax
                   assets and liabilities, for the estimated future income tax
                   effects of temporary differences and carryforwards. Temporary
                   differences are the differences between the financial
                   statement carrying amounts of assets and liabilities and
                   their tax bases, as well as the timing of income or expense
                   recognition for financial reporting and tax purposes of items
                   not related to assets and liabilities. We establish valuation
                   allowances to reduce the carrying amount of deferred income
                   tax assets, if necessary, to amounts that are more likely
                   than not to be realized. We periodically review the adequacy
                   of these valuation allowances and record any reduction in
                   allowances through earnings or, for allowances established in
                   the Trenwick/LaSalle business combination, as an offset to
                   goodwill.

                   In 2000, the income tax provision includes an income tax
                   benefit of $445 applicable to an extraordinary loss on debt
                   redemption. The components of the provision for income taxes
                   for 2001, 2000 and 1999 are as follows:

<TABLE>
<CAPTION>
                                                                            2001        2000        1999
                                                                          --------    --------    --------
<S>                                                                       <C>         <C>         <C>
                   Current and deferred components:
                   Current income tax expense (benefit)                   $ 11,125    $(22,239)   $(17,411)
                   Deferred income tax expense (benefit)                   (25,753)       (290)      5,056
                                                                          --------    --------    --------
                   Total income tax benefit                               $(14,628)   $(22,529)   $(12,355)
                                                                          ========    ========    ========
</TABLE>

                   The income tax provision for each of the years presented
                   differs from the amounts determined by applying the
                   applicable U.S. statutory federal income tax rate of 35% to
                   losses before income taxes as a result of the following:

<TABLE>
<CAPTION>
                                                                            2001        2000        1999
                                                                          --------    --------    --------
<S>                                                                       <C>         <C>         <C>
                   Loss before income taxes                               $(34,153)   $(59,501)   $(22,250)
                                                                          --------    --------    --------
                   Expected income tax benefit at statutory rate of 35%    (11,954)    (20,826)     (7,788)
                   Effect of tax-exempt investment income                     (984)     (5,077)     (6,227)
                   Non-deductible goodwill and other expenses                  529         387         252
                   True-up for prior year returns                           (3,448)      2,103         682
                   Other book-tax differences                                 (559)         --          --
                   Change in valuation allowance                               109          --         770
                   State income taxes                                        1,512         411         (44)
                   Foreign income taxes                                        167         473          --
                                                                          --------    --------    --------
                   Total U.S. federal income tax benefit                  $(14,628)   $(22,529)   $(12,355)
                                                                          ========    ========    ========
</TABLE>

                   Deferred income tax assets (liabilities) are attributable to
                   the following temporary differences at year end 2001 and
                   2000:


                                      F-19
<PAGE>

<TABLE>
<CAPTION>
                                                                              2001          2000
                                                                            ---------    ---------
<S>                                                                         <C>          <C>
                   Deferred income tax assets:
                   Claims and claim expenses discounted                     $  37,950    $  33,947
                   Unearned premium income discounted                          10,845        7,930
                   Contingent interest note adjustments                         6,416        9,552
                   Investment securities, purchase accounting adjustments       1,309        7,419
                   U.S. net operating losses                                   47,982       33,711
                   Alternative minimum tax credits                              5,859        5,256
                   Foreign tax credits                                            410        4,579
                   Unrealized foreign exchange loss                               855           --
                   Other                                                        4,673        5,751
                   Valuation allowance                                           (267)      (2,976)
                                                                            ---------    ---------
                   Total deferred income tax assets                           116,032      105,169
                                                                            ---------    ---------
                   Deferred income tax liabilities:
                   Deferred policy acquisition costs                          (15,890)     (12,693)
                   Unrealized investment gains                                (11,020)      (5,074)
                   Unrealized foreign exchange gains                               --           (4)
                   Equity securities, purchase accounting adjustments          (4,489)      (2,781)
                   Debt securities market discount accretion                   (2,362)      (1,796)
                   Indebtedness purchase accounting adjustment                 (8,437)      (8,679)
                   Deferred intercompany transactions                          (7,510)      (8,549)
                   Other                                                         (567)      (1,995)
                                                                            ---------    ---------
                   Total deferred income tax liabilities                      (50,275)     (41,571)
                                                                            ---------    ---------
                   Net deferred income tax asset                            $  65,757    $  63,598
                                                                            =========    =========
</TABLE>

                   At year end 2001, Trenwick America Corporation has a net
                   operating loss carryforward of $137,091 that will be
                   available to offset regular taxable income during the
                   carryforward periods which expire in 2007 and between 2018
                   and 2021. As a result of the Trenwick/LaSalle business
                   combination, an ownership change took place on September 27,
                   2000, and approximately $41,852 of the total U.S. net
                   operating loss carryforward became limited to a cumulative
                   annual utilization of $5,228. The remaining $95,239 in U.S.
                   net operating loss carryforwards are not so limited. Details
                   of the net operating loss carryforwards and the year of their
                   expiration are described below:

                            U.S. Net Operating                Year of
                            Loss Carryforwards              Expiration
                            ------------------              ----------
                                 $ 9,655                        2007
                                  32,197                        2018
                                  28,491                        2020
                                  66,748                        2021
                            ------------------
                                $137,091
                            ==================

                   In connection with the Trenwick/LaSalle business combination,
                   Trenwick America Corporation recorded a valuation allowance
                   against its deferred income tax asset as sufficient
                   uncertainty existed regarding the realizability of certain
                   foreign tax credits. In evaluating the need for this
                   valuation allowance at year end 2001, it is management's
                   judgment that there has not been a significant change in
                   circumstances and therefore the valuation allowance relative
                   to its remaining foreign tax credits has been maintained.
                   There is no valuation allowance recorded against the U.S. net
                   operating losses because, in management's judgment, it is
                   more likely than not that these amounts will be realized from
                   future operations. Management's judgment is based on its
                   assessment of business plans and related projections of
                   future taxable income that reflect significant assumptions
                   about increased premium volume and improved rates and
                   profitability.


                                      F-20
<PAGE>


                   Income taxes of $17,146 and $27,766 were recovered during
                   2001 and 2000 respectively. Income taxes of $1,371 were paid
                   during 1999.

Note 8             Retirement and Savings Plans
Employee           We recognize expenses for employee retirement and savings
Benefits and       plans as they are incurred.
Compensation
Arrangements       Trenwick America Corporation has a defined contribution plan
                   for substantially all full-time employees through which it
                   contributes 8% of an eligible employee's total compensation
                   to the plan; no employee contributions are made to the plan.

                   Additionally, Trenwick America Corporation maintains a 401(k)
                   savings plan for substantially all full time employees,
                   through which employees contribute up to the maximum amount
                   allowable by the Internal Revenue Service. Trenwick America
                   Corporation contributes up to 6% of a participating
                   employee's compensation to the plan.

                   Trenwick America Corporation's provisions for employee
                   retirement and savings plans follow:

                                                   2001      2000     1999
                                                  ------    ------    ----
                   Defined contribution plans     $  737    $  823    $429
                   401(k) savings plan               606       625     365
                                                  ------    ------    ----
                   Total                          $1,343    $1,448    $794
                                                  ======    ======    ====

                   Restricted Common Share Awards
                   Our parent company awards its restricted common shares to key
                   employees of our company. At the time of the award, our
                   parent company records deferred compensation for the fair
                   value of the restricted common share awards and present
                   deferred compensation as a separate, offsetting component of
                   shareholders' equity. We are allocated a portion of
                   compensation expense which is recognized over the vesting
                   period of the restricted common shares.

                   Trenwick America Corporation recognized $258, $3,897 and
                   $982, respectively, of compensation expense on restricted
                   common share awards for the 2001, 2000 and 1999 years,
                   respectively.

                   Share Options
                   Our parent company grants options for a fixed number of
                   common shares to employees of our company. These options have
                   an exercise price equal to the market value of the shares at
                   the date of grant. The current accounting standard
                   establishes a fair value based method of accounting for
                   stock-based compensation plans; however, it permits an entity
                   to continue to apply the accounting provisions of a previous
                   standard and make pro forma disclosures of net income and
                   earnings per share, as if the fair market value based method
                   had been applied. Our parent company continues to account for
                   the share option grants in accordance with the previous
                   standard and have included the pro forma disclosures required
                   by the fair value based method below.

                   Trenwick Group Ltd. has several plans through which it grants
                   options in its common shares to employees of Trenwick America
                   Corporation at the discretion of its board of directors.
                   Exercise prices are generally fixed at the market value at
                   the date of grant. Options vest and are exercisable on
                   various terms, usually either over a five year period or up
                   to a ten year period. All options have an expiration date not
                   exceeding ten years.


                                      F-21
<PAGE>


                   Upon completion of LaSalle Re Holdings Limited's acquisition
                   of Trenwick Group Inc. and the minority interest of LaSalle
                   Re Limited, all of the options granted to employees of
                   Trenwick America Corporation prior to 2000 became fully
                   vested.

                   Pro Forma Information
                   All of the outstanding share options of Trenwick Group Ltd.
                   that were issued to Trenwick America Corporation employees
                   were issued at an exercise price equal to the fair market
                   value on the date of grant; therefore no compensation expense
                   has been recognized for these grants. Had the fair value
                   based method been applied, net loss would have been
                   $(20,122), $(37,622), and $(10,168) for the years 2001, 2000
                   and 1999, respectively.

                   The pro forma adjustments relate to options granted from 1995
                   to 2001 are based on a fair value method using the
                   Black-Scholes option pricing model. No effect has been given
                   to options granted prior to 1995. Valuation and related
                   assumption information for options granted in 2001, 2000 and
                   1999 are as follows:

<TABLE>
<CAPTION>
                                                             2001           2000        1999
                                                        -------------     --------     -------
<S>                                                     <C>                 <C>         <C>
                   Expected volatility                  38.0% - 59.8%       33.5%       28.0%
                   Risk-free interest rate                       4.0%        5.0%        6.1%
                   Trenwick Group Ltd. common share
                     dividend yield                              0.9%        0.6%        3.0%
</TABLE>

                   The Black-Scholes option valuation model was developed for
                   use in estimating the fair value of options which have no
                   vesting restrictions and are fully transferable. In addition,
                   option valuation models require the input of highly
                   subjective assumptions including the expected share price
                   volatility. Because Trenwick Group Ltd.'s share options have
                   characteristics significantly different from those of traded
                   options, and because changes in the subjective input
                   assumptions can materially affect the fair value estimate, in
                   management's opinion, the existing models do not necessarily
                   provide a reliable measure of the fair value of its share
                   options.

Note 9             We record other comprehensive income for the change in the
Other              net unrealized appreciation of investments and the change in
Compensation       foreign currency translation adjustments, both net of income
Income             taxes.

                   The components of accumulated other comprehensive income at
                   year end 2001 and 2000 are as follows:

<TABLE>
<CAPTION>
                                                                                  2001       2000
                                                                                --------    ------
<S>                                                                             <C>         <C>
                   Unrealized investment gains, net of applicable deferred
                      income taxes of $10,958 and $5,074                        $ 20,466    $9,423
                   Foreign currency translation adjustment, net of applicable
                      deferred income taxes of $855 and $4                        (1,574)        8
                                                                                --------    ------
                   Accumulated other comprehensive income                       $ 18,892    $9,431
                                                                                ========    ======
</TABLE>


                                      F-22
<PAGE>


Note 10            Trenwick America Corporation's insurance subsidiaries are
Insurance          subject to insurance laws and regulations in the
Regulation         jurisdictions in which they operate. These regulations
                   include restrictions that limit the amount of dividends or
                   other distributions available to be paid to Trenwick America
                   Corporation by its insurance subsidiaries without prior
                   approval of the insurance regulatory authorities.

                   Each of Trenwick America Corporation's insurance subsidiaries
                   are subject to restrictions on the payments of dividends
                   without prior approval from the state insurance regulator in
                   its state of domicile. These restrictions are based upon
                   certain measures of statutory surplus and net income. At year
                   end 2001, Trenwick America Corporation's insurance
                   subsidiaries had $14,482 available for the payment of
                   dividends in 2002 without prior regulatory approval.
                   Additionally, the insurance regulators in each of Trenwick
                   America Corporation's subsidiaries' respective states of
                   domicile require the insurance companies to calculate and
                   report certain information under a risk-based capital formula
                   which measures statutory capital and surplus needs based on
                   the risks in a company's mix of business and investment
                   portfolio. Based upon calculations at year end 2001, Trenwick
                   America Corporation's insurance subsidiaries each exceeded
                   the capital levels prescribed by the risk-based capital
                   formula.

                   Trenwick America Corporation's insurance subsidiaries file
                   financial statements prepared in accordance with statutory
                   accounting practices prescribed or permitted by insurance
                   regulators in each of the subsidiaries' states of domicile.
                   Combined statutory surplus of Trenwick America Corporation's
                   insurance subsidiaries was $374,835 and $438,738 at year end
                   2001 and 2000, respectively; their combined statutory net
                   loss was $119,085, $16,157 and $47,603 for the 2001, 2000 and
                   1999 years, respectively.

                   Effective January 1, 2001, the domiciliary state insurance
                   departments of Trenwick America Corporation's U.S. insurance
                   subsidiaries adopted the codification of statutory accounting
                   principles. The codification provides guidance for areas
                   where statutory accounting has been silent and changes
                   current statutory accounting in some areas. The cumulative
                   effect of the adoption of the codification, $14,305, was
                   recorded as an adjustment to increase statutory surplus of
                   the U.S. insurance subsidiaries on January 1, 2001.
                   Additionally, one of the state insurance departments adopted
                   certain prescribed accounting practices that differ from
                   those found in the codification. The most significant of
                   these practices is that deferred income tax assets and
                   liabilities are not recorded. The monetary effect on the
                   combined statutory capital and surplus of Trenwick America
                   Corporation's U.S. insurance subsidiaries of using accounting
                   practices prescribed by that state insurance department was a
                   decrease of $9,042.

                   A state insurance department has permitted one of Trenwick
                   America's insurance subsidiaries domiciled in that state to
                   account for the reinsurance agreement purchased in connection
                   with the Trenwick/Chartwell merger on a prospective basis in
                   its statutory basis financial statements. This treatment is
                   consistent with the U.S. GAAP accounting treatment of the
                   contract. Another state insurance department has required
                   another of Trenwick America Corporation's insurance
                   subsidiaries, domiciled that state, to account for that
                   reinsurance agreement on a retroactive basis. The difference
                   in these statutory accounting practices does not have an
                   effect on the combined statutory surplus or net income of
                   Trenwick America Corporation's U.S. insurance subsidiaries.
                   The terms of this reinsurance agreement are described in Note
                   4.

                   Debt securities and cash with a carrying value of $46,989 at
                   year end 2001 were on deposit with various state or
                   governmental insurance departments in order to comply with
                   insurance laws.

Note 11            Goodwill represents the unamortized excess of purchase price
Goodwill           over the fair value of identifiable net assets of acquired
                   entities which was pushed down to Trenwick


                                      F-23
<PAGE>


                   America Corporation by its ultimate parent Trenwick Group
                   Ltd. Through the 2001 year, we amortized goodwill on a
                   straight-line basis over twenty-five years. On a periodic
                   basis, we estimate the future undiscounted cash flows of the
                   business to which the goodwill relates in order to ensure
                   that its carrying value has not been impaired.

                   In July 2001, the Financial Accounting Standards Board issued
                   a statement covering goodwill and other intangible assets,
                   which is required to be adopted at the beginning of 2002. The
                   statement requires that the goodwill be tested for impairment
                   under either market value or cash flow tests and any
                   impairment be recorded on January 1, 2002 as the cumulative
                   effect of an accounting change. The impairment tests must be
                   completed by the time of reporting of quarterly results of
                   operations as of June 30, 2002. We will conduct impairment
                   tests on the goodwill balance and implement the statement
                   during the first or second quarter of 2002.

                   The goodwill that resulted from the Trenwick/LaSalle business
                   combination which was pushed down to Trenwick America
                   Corporation is reflected in the consolidated financial
                   statements at $52,119 net of accumulated amortization of
                   $1,866 at year end 2001.

Note 12            We record our investments in managing general agencies,
Other Assets       through which we write primary insurance business and in
and Other          which we hold ownership interest of between 20% and 30%, in
Liabilities        other assets on the balance sheet. Based on the ownership
                   interest and our ability to exercise significant influence on
                   the operating and financial policies of these managing
                   general agencies, we account for these investments under the
                   equity method.

                   We record premises and equipment, including leasehold
                   improvements and capitalized software costs, at cost and
                   amortize or depreciate them using the straight-line method
                   over their useful lives.

                   The components of other assets and other liabilities at year
                   end 2001 and 2000 are as follows:

<TABLE>
<CAPTION>
                                                                           2001      2000
                                                                         -------   --------
<S>                                                                      <C>       <C>
                   Other assets:
                   Investments in managing general agencies              $ 9,010   $  9,968
                   Premises and equipment, net of accumulated
                     depreciation of $3,963 and $299, respectively        15,106      6,304
                   Funds held by insurers and other insurance deposits    34,057     14,556
                   Prepaid expenses and other deposits                       517     30,726
                   Current income taxes recoverable                        3,397     21,386
                   Contingent commissions receivable                       8,666      3,960
                   Other receivables                                      11,232     13,019
                   Other                                                   7,789      2,955
                                                                         -------   --------
                   Total                                                 $89,774   $102,874
                                                                         =======   ========
                   Other liabilities:
                   Accounts payable and accrued expenses                 $16,661   $ 21,234
                   Security deposits for insureds                          9,548      7,788
                   Contingent commissions payable                          4,746      5,484
                   Other                                                   2,984      3,879
                                                                         -------   --------
                   Total                                                 $33,939   $ 38,385
                                                                         =======   ========
</TABLE>

                   During the 2001, 2000 and 1999 years, Trenwick America
                   Corporation recorded $1,944, $239 and $188, respectively, in
                   equity income related to investments in managing general
                   agencies.


                                      F-24
<PAGE>


                   Depreciation and amortization on items included in other
                   assets charged to operations for the 2001, 2000 and 1999
                   years was $3,075, $299 and $1,006, respectively.

                   Operating Lease Agreements
                   Trenwick America Corporation leases office space under
                   non-cancelable operating leases which expire on various dates
                   through 2008. Trenwick America Corporation's future minimum
                   lease commitments at year end 2001 total $10,140 and are
                   payable as follows: 2002, $1,482; 2003, $1,549; 2004, $1,597;
                   2005, $1,562; 2006, $1,556 and thereafter, $2,394.

                   Total office rent expense for 2001, 2000 and 1999 was $1,282,
                   $2,060 and $1,405, respectively.

Note 13            We define the fair value of a financial instrument as the
Fair Value of      amount at which the instrument could be exchanged in a
Financial          current transaction between willing parties. We estimate
Instruments        values based upon quoted market prices or broker dealer
                   quotes and these estimates may vary in the near term.

                   The carrying amounts and estimated fair values of financial
                   instruments in summary form at year end 2001 and 2000 follow:

<TABLE>
<CAPTION>
                                                            2001                      2000
                                                  -----------------------   -----------------------
                                                   Carrying       Fair       Carrying       Fair
                                                    Amount       Value        Amount       Value
                                                  ----------   ----------   ----------   ----------
<S>                                               <C>          <C>          <C>          <C>
                   Assets:
                   Debt securities (Note 5)       $1,054,518   $1,054,518   $1,006,161   $1,006,161
                   Equity securities (Note 5)         24,164       24,164      103,641      103,641
                   Cash and cash equivalents         128,522      128,522      133,395      133,395
                   Deposits                            7,800        7,800       21,547       21,547

                   Liabilities:
                   Indebtedness (Note 6)             288,878      278,708      283,289      283,301
                   Preferred capital securities
                    (Note 6)                          86,973       55,000       87,059       84,799
</TABLE>

Note 14            Restrictions on Certain Payments within Trenwick
Commitments,       Because Trenwick America Corporation's operations are
Contingencies,     conducted through its operating subsidiaries, Trenwick
Concentrations,    America Corporation is dependent upon the ability of its
and                operating subsidiaries to transfer funds, principally in the
Related-Party      form of cash dividends, tax reimbursements and other
Transactions       statutorily permissible payments. In addition to general
                   legal restrictions on payments of dividends and other
                   distributions to shareholders applicable to all corporations,
                   Trenwick America Corporation's insurance subsidiaries are
                   subject to further regulations that, among other things,
                   restrict the amount of dividends and other distributions that
                   may be paid to their parent corporations, which is more fully
                   described in Note 10. Management believes that current levels
                   of cash flow from operations and assets held at the holding
                   company level, together with receipt of dividends from
                   Trenwick America Corporation's operating subsidiaries and
                   capital contributions from Trenwick Group Ltd., will provide
                   Trenwick America Corporation with sufficient liquidity to
                   meet its operating needs over the next twelve months.

                   Litigation
                   Trenwick America Corporation is party to various legal
                   proceedings generally arising in the normal course of its
                   business. Trenwick America Corporation does not believe that
                   the eventual outcome of any such proceeding will have a
                   material effect on its financial condition or results of
                   operations or cash flows. Trenwick America Corporation's
                   subsidiaries are regularly engaged in the investigation and
                   the defense of claims arising out of the conduct of their
                   business. Pursuant to


                                      F-25
<PAGE>


                   Trenwick America Corporation's insurance and reinsurance
                   arrangements, disputes are generally required to be finally
                   settled by arbitration.

                   Investments and Cash Held as Collateral or on Deposit
                   Debt securities and cash with a carrying value of $140,475
                   are being held in trust as collateral for certain reinsurance
                   obligations. In addition, cash in the amount of $1,713 has
                   been pledged as collateral for letters of credit for
                   reinsurance obligations.

                   Concentrations
                   During 2001, Trenwick America Corporation received 33% of its
                   gross written premiums from three reinsurance brokers, of
                   which Aon Reinsurance Agency accounted for 19%, Guy Carpenter
                   and Company, Ltd. accounted for 8%, and Reinsurance
                   Alternatives accounted for 6%. During 2000, Aon Reinsurance
                   Agency, E.W. Blanch and Marsh and MacLennan provided 27%, 11%
                   and 9% of Trenwick America Corporation's gross written
                   premiums, respectively. In 1999, Aon Reinsurance Agency,
                   Marsh and MacLennan, and E.W. Blanch and Company provided
                   37%, 16%, and 8% of Trenwick America Corporation's gross
                   written premiums, respectively.

                   Loss of all or a substantial portion of the business provided
                   by these brokers could have a material adverse effect on the
                   business and operations of Trenwick America Corporation.
                   Trenwick America Corporation does not believe, however, that
                   the loss of such business would have a long-term adverse
                   effect because of Trenwick America Corporation's competitive
                   position within the reinsurance market and the availability
                   of business from other brokers.

                   During 2001, Trenwick America Corporation received 22% of its
                   assumed written premiums from three ceding companies, of
                   which Travelers Group accounted for 9%, Avemco Group
                   accounted for 7% and American International Group accounted
                   for 6%. During 2000, LDG Reinsurance Underwriters provided
                   21% of Trenwick America Corporation's assumed written
                   premiums during 1999, and American International Group and
                   Duncanson and Holt Group each accounted for 5% of assumed
                   written premiums. In 1999, Trenwick America Corporation
                   produced 12% of assumed written premiums from Duncanson and
                   Holt, American International Group and CNA each accounted for
                   7% of assumed written premiums.

                   Trenwick America Corporation wrote approximately 68% of its
                   direct written premiums during 2001 through four managing
                   agencies of which Florida Intracoastal Underwriters, Ltd.
                   accounted for 27%, HDR Insurance Services accounted for 16%,
                   Inter-Reco, Inc. accounted for 14% and Risk Control Services
                   accounted for 11%. During 2000, Florida Intracoastal
                   Underwriters, HDR Insurance Services, Inter-Reco, Inc. and
                   Risk Control Services provided 30%, 21%, 12% and 10% of
                   direct written premiums, respectively.

                   At year end 2001, 37% of Trenwick America Corporation's
                   reinsurance recoverables on unpaid claims and claims
                   expenses, net of funds held offsets, are recoverable from
                   five principal retrocessionaires. These retrocessionaires are
                   London Life and Casualty Reinsurance Corporation ($64,378),
                   Centre Solutions (U.S.) Limited ($50,096), UNUM Life
                   Insurance Company of America ($33,077), Continental Casualty
                   Co. ($28,257), and Scandinavian Reinsurance Company Ltd.
                   ($27,591). Each of these companies is rated B++ or better by
                   A.M. Best Company.

                   Related Party Transactions with Trenwick Group Ltd. and
                   Affiliates

                   Trenwick America Reinsurance Corporation has entered into a
                   stop loss agreement with Trenwick International Ltd., one of
                   its U.K. affiliates. During 2001 and 2000, Trenwick
                   International Ltd. ceded premiums of $10,879 and $173,
                   respectively, and during 2001 and 2000, ceded claims and
                   claims expenses of $31,139 and $5,039, respectively to
                   Trenwick America Corporation under this agreement. No losses
                   were ceded under this agreement during 1999. Unpaid claims
                   and claims


                                      F-26
<PAGE>


                   expenses related to this agreement at year end 2001 and 2000
                   were $31,544 and $5,472, respectively.

                   Trenwick America Reinsurance Corporation has entered into a
                   multi-layer excess of loss catastrophe reinsurance treaty
                   with LaSalle Re Limited, a Bermuda affiliate. During 2001,
                   2000 and 1999, Trenwick America Reinsurance Corporation ceded
                   $1,088, $2,175 and $2,175, respectively of premiums to
                   LaSalle Re Limited. No losses have been ceded under this
                   agreement and profit commissions receivable from LaSalle Re
                   Limited was $924 at year end 2001.

                   In the first quarter of 2001 and the fourth quarter of 2000,
                   a Bermuda affiliate of Trenwick America Corporation purchased
                   $10,650 and $13,000, respectively, par value of the
                   mandatorily redeemable capital securities in the open market.
                   During the 2001 and 2000 years, Trenwick America Corporation
                   incurred $1,806 and $166, respectively, of dividends on the
                   preferred capital securities held by its affiliate.

                   Included in due from parent and affiliates on Trenwick
                   America Corporation's consolidated balance sheet are
                   recoverable expenses of $8,430 and non-interest bearing
                   demand loans receivable of $59,830, the majority of which is
                   receivable from Trenwick (Barbados) Ltd. and Chartwell
                   Managing Agents Limited. Due to affiliates as reflected on
                   Trenwick America Corporation's consolidated balance sheet
                   includes recoverable expenses of $1,790 and a promissory note
                   payable to Trenwick (Barbados) Ltd. of $48,644. Under terms
                   of the promissory note, principal amounts are payable on
                   demand. Interest on unpaid balances is at a rate equal to
                   that generated by Trenwick Groupd Ltd.'s investment
                   portfolio. During the 2001 year, principal repayments
                   amounted to $26,927 with $1,108 incurred of interest expense.
                   No interest expense was recorded in the 2000 year.

                   Other Related Party Transactions

                   Included in other assets are Trenwick America Corporation's
                   investments in managing general agencies through which it
                   writes primary insurance business, as more fully described in
                   Note 12. At year end 2001 and 2000, the carrying value of
                   these investments totaled $9,010 and $9,968. During 2001 and
                   2000, Trenwick America Corporation incurred $11,655 and
                   $37,898, respectively, of commission expense to these
                   managing general agencies. At year end 2001 and 2000,
                   Trenwick America Corporation's balance sheet includes $19,231
                   and $25,494, respectively, of agents' balances receivable
                   from these managing general agencies including installment
                   premiums deferred and not yet due. The current portion of
                   balances due from these managing general agencies are settled
                   on a monthly basis.


                                      F-27
<PAGE>


Note 15
Unaudited          Summarized unaudited quarterly financial data for 2001 and
Quarterly          2000 follows:
Financial
Data

<TABLE>
<CAPTION>
                                                  Quarter ended           2001            2000
                                                  --------------        --------         -------
<S>                                               <C>                   <C>              <C>
                   Net premiums earned            Fourth quarter        $124,578         $99,381
                                                  Third quarter           94,574         114,007
                                                  Second quarter          87,214          48,333
                                                  First quarter           73,922          49,070

                   Net investment income          Fourth quarter          16,276          14,751
                                                  Third quarter           16,005          13,838
                                                  Second quarter          18,311          27,977
                                                  First quarter           17,449          10,035

                   Net realized investment        Fourth quarter            (33)             192
                      gains (losses)              Third quarter          (4,189)           6,931
                                                  Second quarter             252           (315)
                                                  First quarter            2,104            (40)

                   Net income (loss)              Fourth quarter        (11,939)         (7,082)
                                                  Third quarter          (7,069)        (37,835)
                                                  Second quarter         (7,264)          19,830
                                                  First quarter            6,747        (11,885)
</TABLE>


                                      F-28
<PAGE>


                      Report of Independent Accountants on
                          Financial Statement Schedules



To the Board of Directors and Stockholder of
Trenwick America Corporation

Our audits of the consolidated financial statements referred to in our report
dated February 27, 2002 (which report and consolidated financial statements are
included in this Annual Report on Form 10-K) also included an audit of the
financial statement schedules listed in Item 14(a)(2) of this Annual Report on
Form 10-K. In our opinion, these financial statement schedules present fairly,
in all material respects, the information set forth therein when read in
conjunction with the related consolidated financial statements.




/s/ PricewaterhouseCoopers LLP

New York, New York
February 27, 2002





                                       S-1
<PAGE>


                  TRENWICK AMERICA CORPORATION AND SUBSIDIARIES
            SCHEDULE II-CONDENSED FINANCIAL INFORMATION OF REGISTRANT

                          TRENWICK AMERICA CORPORATION
                              (Parent Company Only)
                                  BALANCE SHEET
            (Amounts expressed in thousands of United States dollars)
                           December 31, 2001 and 2000

                                                             2001       2000
                                                           --------   --------
Assets:
     Investments in consolidated subsidiaries
       after minority interest of $86,973 and $87,059      $506,452   $572,021
     Cash and cash equivalents                                  288      8,686
     Due from consolidated subsidiaries                      70,135     54,816
     Net deferred income taxes                               20,745     17,597
     Other assets                                            71,117     51,892
                                                           --------   --------
     Total assets                                          $668,737   $705,012
                                                           --------   --------
Liabilities:
     Due to consolidated subsidiaries                      $ 80,365   $ 88,158
     Other liabilities                                       10,742     19,255
     Indebtedness                                           402,281    396,692
                                                           --------   --------
     Total liabilities                                      493,388    504,105
Stockholder's equity                                        175,349    200,907
                                                           --------   --------
     Total liabilities and stockholders' equity            $668,737   $705,012
                                                           ========   ========




                                      S-2
<PAGE>


                  TRENWICK AMERICA CORPORATION AND SUBSIDIARIES
           SCHEDULE II--CONDENSED FINANCIAL INFORMATION OF REGISTRANT
                                   (continued)

                          TRENWICK AMERICA CORPORATION
                              (Parent Company Only)
                             STATEMENT OF OPERATIONS
            (Amounts expressed in thousands of United States dollars)
                  Years Ended December 31, 2001, 2000 and 1999

                                                2001        2000        1999
                                              --------    --------    --------
Revenues:
Consolidated subsidiary dividends             $ 51,300    $ 19,269    $ 53,400
Net investment income                              457       1,290          43
Other income                                       314       1,934         132
                                              --------    --------    --------
Total revenues                                  52,071      22,493      53,575
                                              --------    --------    --------
Expenses:
General and administrative expenses              4,061      18,686       5,772
Interest expense and preferred
  capital securities dividends                  19,506      26,934      16,586
Foreign currency gains                            (268)         (3)         --
                                              --------    --------    --------
Total expenses                                  23,299      45,617      22,358
                                              --------    --------    --------
Income before equity in undistributed
  income of unconsolidated subsidiaries         28,772     (23,124)     31,217
Equity in undistributed income (loss) of
                                              --------    --------    --------
  consolidated subsidiaries                    (56,012)    (26,778)    (48,821)
                                              --------    --------    --------
Net loss before income taxes                   (27,240)    (49,902)    (17,604)
Income taxes (benefit)                          (7,715)    (12,930)     (7,709)
                                              --------    --------    --------
Net loss                                      $(19,525)   $(36,972)   $ (9,895)
                                              ========    ========    ========




                                      S-3
<PAGE>


                  TRENWICK AMERICA CORPORATION AND SUBSIDIARIES
           SCHEDULE II--CONDENSED FINANCIAL INFORMATION OF REGISTRANT
                                  (continued)

                          TRENWICK AMERICA CORPORATION
                              (Parent Company Only)
                             STATEMENT OF CASH FLOWS
            (Amounts expressed in thousands of United States dollars)
                  Years Ended December 31, 2001, 2000 and 1999

                                                 2001        2000        1999
                                               --------    --------    --------
Operating activities:
Interest and operating expenses paid           $(26,569)   $ (6,196)   $     23
General and administrative expenses paid        (34,729)    (49,027)    (20,874)
Income taxes (paid) recovered                     2,664     (72,206)      1,201
Net investment income received                      457         244          --
Other income                                     (1,944)     42,853      16,586
                                               --------    --------    --------
Cash for operating activities                   (60,121)    (84,332)     (3,064)
                                               --------    --------    --------
Investing activities:
Sales of debt securities                             --         257         343
Additions to premises and equipment              (4,524)     (1,514)       (632)
Investment in subsidiaries                           --       3,048        (835)
                                               --------    --------    --------
Cash from (for) investing activities             (4,524)      1,791      (1,124)
                                               --------    --------    --------
Financing activities:
Issuance of indebtedness                         14,000      24,000          --
Issuance costs of indebtedness                   (1,475)     (1,834)         --
Net dividends received (paid)                    51,300       5,100       7,300
Capital contributions received                    5,099          --          --
Intercompany loans (repayments) advances        (12,677)     62,361      (2,200)
                                               --------    --------    --------
Cash from financing activities                   56,247      89,627       5,100
                                               --------    --------    --------
Change in cash and cash equivalents              (8,398)      7,086         912
Cash and cash equivalents, beginning of year      8,686       1,600         688
                                               --------    --------    --------
Cash and cash equivalents, end of year         $    288    $  8,686    $  1,600
                                               ========    ========    ========




                                      S-4
<PAGE>


                  TRENWICK AMERICA CORPORATION AND SUBSIDIARIES
               SCHEDULE III -- SUPPLEMENTARY INSURANCE INFORMATION
            (Amounts expressed in thousands of United States dollars)
                  Years Ended December 31, 2001, 2000 and 1999

                                           2001           2000          1999
                                        ----------    ----------    -----------
Deferred policy acquisition costs
Treaty reinsurance                      $   36,039    $   30,347    $    34,757
Specialty program insurance                  9,364         5,920          3,214
                                        ----------    ----------    -----------
  Total                                     45,403        36,267         37,971

Unpaid claims and claim expenses
Treaty reinsurance                       1,146,975     1,221,071      1,223,981
Specialty program insurance                233,585       169,961        142,214
Affiliate transactions                      31,544         5,472             --
                                        ----------    ----------    -----------
  Total                                  1,412,104     1,396,504      1,366,195

Unearned premium income
Treaty reinsurance                         112,085        92,224        110,909
Specialty program insurance                126,919        84,950         63,133
                                        ----------    ----------    -----------
  Total                                    239,004       177,174        174,042

Net premiums earned
Treaty reinsurance                         288,760       265,934        177,542
Specialty program insurance                 80,649        44,684         10,343
Affiliate transactions                      10,879           173             --
                                        ----------    ----------    -----------
  Total                                    380,288       310,791        187,885

Net investment income
Treaty reinsurance                          49,868        55,466         38,679
Specialty program insurance                 13,057         9,493          1,722
Unallocated                                  5,116         1,642           (110)
                                        ----------    ----------    -----------
  Total                                     68,041        66,601         40,291

Claims and claims expenses incurred
Treaty reinsurance                         224,860       224,250        130,602
Specialty program insurance                 66,530        34,037          5,766
ECRA pool runoff                            11,530            --             --
Affiliate transactions                       2,568        17,756         10,814
                                        ----------    ----------    -----------
  Total                                    305,488       276,043        147,182

Policy acquisition costs
Treaty reinsurance                         101,217        83,134         61,633
Specialty program insurance                 20,996         9,846            917
                                        ----------    ----------    -----------
  Total                                    122,213        92,980         62,550

Underwriting expenses
Treaty reinsurance                          11,680        13,718         15,007
Specialty program insurance                  7,210         7,012          2,687
                                        ----------    ----------    -----------
  Total                                     18,890        20,730         17,694

Net premiums written
Treaty reinsurance                         320,820       251,111        165,744
Specialty program insurance                 99,708        54,028          5,641
Affiliate transactions                      10,879           173             --
                                        ----------    ----------    -----------
  Total                                 $  431,407    $  305,312    $   171,385


                                      S-5
<PAGE>


                  TRENWICK AMERICA CORPORATION AND SUBSIDIARIES
                 SCHEDULE V - VALUATION AND QUALIFYING ACCOUNTS
            (Amounts expressed in thousands of United States dollars)
                  Years Ended December 31, 2001, 2000 and 1999


                                                       Balance at    Balance at
                                                       Beginning       End of
                                                       of Period       Period
                                                       ----------    ----------
Year Ended December 31, 2001
Allowance for uncollectible reinsurance
  recoverable and premiums receivable                   $10,191        $13,334

Year Ended December 31, 2000
Allowance for uncollectible reinsurance
  recoverable and premiums receivable                    $6,569        $10,191

Year Ended December 31, 1999
Allowance for uncollectible reinsurance
  recoverable and premiums receivable                    $6,402         $6,569




                                      S-6