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News Focus - Run-off ruling hits CIGNA.

Europe Intelligence Wire

| April 01, 2006 | COPYRIGHT 2006 Financial Times Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

(From Reinsurance)

CIGNA Corporation has reported that it has received an adverse ruling from a London arbitration panel concerning a dispute over a retrocessional reinsurance arrangement related to a portion of its run-off workers' compensation reinsurance business written in the London market. This ruling resulted in a $14m after-tax charge.

Because the ruling relates to an exposure that existed at 31 December 2005 and the company has not yet filed its 2005 financial statements, it is considered a subsequent event under generally accepted accounting principles that must be recorded in the company's 2005 financial ...

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