Swiss Re duly applauded the decision by the United States Court of Appeals for the Second Circuit upholding the jury verdict in favor of Swiss Re in the case of SR International Business Insurance Company Ltd. versus World Trade Center Properties, LLC, et al. (See lead article above).
As the leading insurer, Swiss Re had the most lose, if the Appeals Court had overturned the jury finding that the attacks on the WTC constituted “a single occurrence.” Jacques Dubois, CEO, Swiss Re America Holding Corporation spoke for the reinsurer, as follows: “The Second Circuit affirmed a unanimous jury verdict finding that the destruction of the WTC on September 11, 2001, was a single occurrence under the terms of Swiss Re’s coverage. Silverstein’s two-occurrence claim against Swiss Re gave rise to five years of protracted litigation.
“Today’s decision resolves Silverstein’s two-occurrence claim once-and-for-all in Swiss Re’s favor. As it has since the days following 9/11, Swiss Re will continue to honor its contractual obligations under the terms of coverage it agreed to provide before 9/11.”
This decision means that Swiss Re’s payment obligation is subject to the terms and conditions of the operative Willis policy and cannot exceed Swiss Re’s 25 percent share of the $3.5 billion loss limit Silverstein purchased. That still comes to $875 million, but at least the decision will hopefully end five years of litigation. Swiss Re filed for declaratory relief in October of 2001 (See IJ Website Oct. 23, 2001).