NU Online News Service, Nov. 13, 3:30 p.m. EST
SCOR said today it has been informed of arbitration results regarding the World Trade Center indemnification dispute between Allianz and SCOR--in that Allianz had not exceeded its rights and obligations.
SCOR said it and its retrocessionnaires "will assume, to the extent of their respective commitments, their share in the indemnification obligations relating to the World Trade Center claim."
Additional costs resulting from the full coverage of two distinct events are estimated at 39 million Euros ($57.98 million, at current exchange rates) after tax and retrocession.
SCOR estimated these additional costs would neither modify the return on equity objectives of the SCOR Group, nor its dividend distribution policy, and would not affect SCOR's financial position.
"This award finally terminates this legacy matter, which originated in 2001," SCOR said in a statement.
On May 23, 2007, agreements concerning the World Trade Center were signed between Silverstein Properties and insurers including Allianz. According to a 2007 statement, SCOR reinsured Allianz Global Risks U.S. on this policy.
In the statement, SCOR said it considered that the Allianz settlement agreement did not respect the terms and conditions of the Certificate of Reinsurance between SCOR and Allianz. SCOR said it informed Allianz that the settlement exceeded the contractual requirements and contained "ex gratia elements."
SCOR requested the case be referred to arbitration.
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