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Market Report: Asia/Pacific/Middle East - Off to a good start.
(From Reinsurance)
By Isobel McCalman.
$1.12bn for Sompo
Sompo Japan Insurance has been awarded $1.12bn for claims related to the 11 September 2001 attack and the November 2001 crash of an American Airlines plane, by an arbitration panel. The panel decided against Fortress Re, the reinsurance pool manager which, prior to November 2001, had reinsured close to 40% of the worldwide airline aviation insurance market.
The arbitration award concluded that Fortress Re had defrauded Sompo by misrepresenting pool underwriting results and failing to disclose material facts in its accounting for financial reinsurance. The panel also held that Fortress Re fraudulently transferred hundreds of millions of dollars in dividends and fictitious profits ceded to Carolina Reinsurance Company - a Bermudian reinsurance company owned by Fortress Re principals that is in liquidation proceedings in Bermuda.
The risk pool is now in run-off having collapsed amid claims after 11 September and the 12 November crash. The pool's members were Nissan Aioi Insurance Co and Taisei Fire & Marine Insurance.
In its ruling, the panel awarded Sompo $1.01bn in compensatory damages, the return of Sompo assets in escrow formerly held by Fortress Re in the amount of $10.6m and punitive damages and attorneys' fees in the amount of 100m.
- MGA officers face fraud charges; Fortress Re underreported pool liabilities,...
- Magazine article from: Business Insurance McLeod, Douglas January 6, 2003 700+ words
...officers of aviation managing general agent Fortress Re Inc. and auditor Deloitte & Touche...the liquidators of a Bermuda-based Fortress Re affiliate. Aioi Insurance Co. Ltd...North Carolina federal court that top Fortress Re officials concealed massive losses on...
- Panel hits MGA with fraud award; Fortress Re told to pay $1.1 billon.
- Magazine article from: Business Insurance January 5, 2004 700+ words
...victory against managing general agent Fortress Re Inc. has led the insurer to seek a court ruling that Fortress Re's principals are similarly liable...punitive damages after finding that Fortress Re officials fraudulently concealed massive...
- Aviation MGA sued for fraud.(managing general agency)(Fortress Re...
- Magazine article from: Business Insurance Mcleod, Douglas March 18, 2002 700+ words
...insurer clients. The privately held MGA, Fortress Re Inc., which was formerly a major market...Bermuda retrocessional reinsurer owned by Fortress Re principals, the suit says. The Bermuda...retrocessionaire of the three-member Fortress Re pool, paid out most of the money it...
- Sompo Japan Insurance Wins Billion Dollar Arbitration Award Against Fortress...
- Press release article from: Business Wire December 29, 2003 700+ words
...December 18 in favor of Sompo and against Fortress Re, a North Carolina reinsurance pool...reinsurance industry experts, concluded that Fortress Re, through its principals Maurice Sabbah...reinsurance. The panel also held that Fortress Re fraudulently transferred hundreds of...
- Cadwalader Wickersham & Taft LLP: Sompo Japan Insurance Wins Billion Dollar...
- News wire article from: Canadian Corporate News December 29, 2003 700+ words
...December 18 in favor of Sompo and against Fortress Re, a North Carolina reinsurance pool...reinsurance industry experts, concluded that Fortress Re, through its principals Maurice Sabbah...reinsurance. The panel also held that Fortress Re fraudulently transferred hundreds of...
- Cadwalader Completes Landmark Fortress Re Settlement; Produces Over $400...
- News wire article from: Canadian Corporate News July 21, 2004 700+ words
...completed the closing of a settlement with Fortress Re, a North Carolina reinsurance pool...insurance companies that were members of the Fortress Re reinsurance pool. The settlement was...2003 in favor of Sompo and against Fortress Re, an award that was confirmed by the...
- Sompo has won a $1.1 billion arbitration award against North Carolina...
- Magazine article from: Risk & Insurance March 1, 2004 700+ words
...North Carolina reinsurance pool manager Fortress Re, Sompo's law firm, Cadwalader Wickersham...The arbitration panel concluded that Fortress Re, through its principals Maurice Sabbah...reinsurance. The panel also held that Fortress Re fraudulently transferred hundreds of...
- Fortress Re partially settles fraud claims.(Brief Article)
- Magazine article from: Business Insurance January 12, 2004 700+ words
Byline: Douglas McLeod BURLINGTON, N.C.-Managing general agent Fortress Re Inc. has paid three Japanese insurers $265 million in what the insurers describe as a partial settlement of claims that Fortress...