Trenwick to Cease Reinsurance Underwriting in U.S.

April 15, 2003

Trenwick Group Ltd. will cease underwriting reinsurance business under its previously announced underwriting facility with Chubb Re, Inc., a subsidiary of The Chubb Corporation.

The underwriting facility, which began in November 2002, permits Trenwick to write up to $400 million of U.S. Reinsurance business on behalf of Chubb Re through Jan. 31, 2004. Since inception in November 2002, Trenwick has underwritten approximately $128 million of reinsurance in this facility. Trenwick will continue to be entitled to the economic benefits of existing business under the facility subject to the terms and conditions of the facility.

Trenwick’s ability to write reinsurance business under the facility has been severely constrained by its financial condition and concerns arising with respect to its on going stability.

As a result, Trenwick will cease its future underwriting activities under the facility in order to reduce Trenwick’s costs. The effect of this cessation is that Trenwick America Reinsurance Corporation will now be primarily in runoff. Trenwick will continue to service and pay claims for all business previously written through Trenwick America Reinsurance Corporation outside of the Chubb facility and shall jointly adjust and settle with Chubb Re any claim arising under the business written pursuant to the Chubb facility subject to Chubb Re’s final authority.

Was this article valuable?

Here are more articles you may enjoy.