Substantial Reinsurance Recoveries

In the mid to late 1990s, certain practices developed in the UK, US and Bermudian Personal Accident reinsurance markets which spawned a welter of high-profile arbitrations and court cases involving many hundreds of millions of dollars.

Our first involvement was for a North American reinsurer who was the unknowing victim of an artificially created spiral in the Personal Accident LMX market which resulted in its being unexpectedly exposed to multi-million dollar losses to various different reinsureds; the pursuit of arbitration proceedings and negotiations ultimately enabled the client to close its book on very favourable terms.

We also acted for a London market company whose underwriter had been duped into accepting a reinsurance of the infamous Unicover pool's whole account; successful arbitration proceedings saved the client losses that were estimated at the time to exceed US$500 million.

We have also assisted the same underwriter over many years, and various arbitrations, in minimising its exposures in respect of a book of Scandinavian workers' compensation business, and maximising its substantial reinsurance recoveries in respect of a book of US workers' compensation business.