Swiss Re seeks judgement on WTC claims

Global reinsurer Swiss Re is taking the offensive against World Trade Center (WTC) lessee Larry Silverstein, asking the court to have the September 11 attacks on the building classified as one insured event.The move follows Silverstein’s statements to the press that he would file two insurance claims on the building, citing the fact that two planes were flown into the towers, and thus collect double the payout, about US$7 billion.The building was in the process of being insured for US$3.5 billion, a sum that will just cover replacement costs estimated at US$3.2 billion, and do little to deal with loss of rental income and other issues.Swiss Re filed papers with the U.S. federal court in Manhattan seeking a “declaratory judgement” on behalf of subsidiary SR International, which is responsible for about 22% of the US$3.5 billion policy on the WTC, or US$770 million. In total, Swiss Re estimates its losses from the terrorist attacks at US$1.25 billion, although this number would grow significantly should the courts recognize Silverstein’s claims.Swiss Re says the decision will speed up the claims process for parties insured for the WTC property, such as the New York Port Authority, allowing them to meet their short-term obligations. It is also asking the court for clarification of who claims should be paid to, whether this is to Silverstein and the investors he represents or to the other parties involved.