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                                                                      Exhibit 18

May 7, 1996

Mr. Peter R. Porrino
Senior Vice President & CFO
Zurich Reinsurance Centre Holdings, Inc.
One Canterbury Green
P.O. Box 29
Stamford, CT  06904-0029

Dear Mr. Porrino:

Note 2 of Notes to the Consolidated Financial Statements of Zurich Reinsurance
Centre Holdings, Inc. ("the Company") included in its Quarterly Report on Form
10-Q for the quarter ended March 31, 1996, describes a change in the method of
accounting for certain loss reserves from reporting reserves for certain tabular
workers' compensation indemnity reserves without discount to reporting such on a
discounted basis. You have advised us that you believe the change is to a
preferable method in your circumstances because (1) it will enhance the
comparability of the Company's financial statements by changing to the prevalent
method utilized in the industry and (2) anticipated investment income is a
significant component of the pricing of the business as the claims are paid over
extended periods and, therefore, discounting is representationally faithful to
the economics of workers' compensation reinsurance.

There are no authoritative criteria for determining a "preferable" method for
reporting certain tabular workers' compensation indemnity reserves based on the
particular circumstances; however, we conclude that the change in the method of
reporting certain tabular workers' compensation indemnity reserves is to an
acceptable alternative method which, based on your business judgment to make
this change for the reasons cited above, is preferable in your circumstances. We
have not conducted an audit in accordance with generally accepted auditing
standards of any financial statements of the Company as of any date or for any
period subsequent to December 31, 1995 and therefore do not express any opinion
on the financial statements of Zurich Reinsurance Centre Holdings, Inc.
subsequent to that date.

                                                     Very truly yours,

                                                     /s/ ERNST & YOUNG LLP


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