A decision in favor of Fairfax’s Sphere Drake should not materially impact Germany’s Hanover Re, the reinsurer says.The decision, against brokers and underwriting agents who the court says fraudulently exposed Sphere Drake to U.S. workers’ compensation carve out business, means Sphere Drake has grounds to refuse payment of the losses under the reinsurance contracts.”There has been speculation that this ruling might have a major impact on our New York subsidiary, Clarendon Insurance Group,” states a Hannover Re release. “We therefore wish to clarify that the worst-case scenario of this judgement is in the order of $US15 million. This amount would be recovered from the prior shareholders.”Those shareholders have already provided collateral with respect to the relevant reinsurance agreements.
Quebec flooding raises 2024 NatCat losses to $7.6 billion
Flooding after Tropical Storm Debby passed through Montreal and nearby regions of Quebec in August caused $2.5 billion in insured damage, according to initial estimates from Catastrophe Indices and Quantification Inc. (CatIQ). The Aug. 9 and 10 catastrophe now ranks as the costliest insured event in Quebec’s history, says Insurance Bureau of Canada. “The record-breaking […]
By Alyssa DiSabatino | September 13, 2024
2 min read