MORE OPPOSITION TO ACE PLAN:

April 18, 2005

Liberty Mutual Group has joined a group of insurers opposing the acquisition of ACE American Reinsurance Company by Randall & Quilter Investment Holdings Ltd. Boston-based Liberty Mutual has requested that the Pennsylvania Insurance Department conduct a thorough investigation of the transactions. Liberty Mutual told Insurance Commissioner Diane Koken that it has serious concerns that the deal would have a “significantly unfair and unreasonable effect upon policyholders and reinsurance cedants,” including Liberty Mutual, and is not in the best interest of the insurance buying public or the U.S. insurance industry.

Liberty Mutual Group has joined a group of insurers opposing the acquisition of ACE American Reinsurance Company by Randall & Quilter Investment Holdings Ltd. Boston-based Liberty Mutual has requested that the Pennsylvania Insurance Department conduct a thorough investigation of the transactions. Liberty Mutual told Insurance Commissioner Diane Koken that it has serious concerns that the deal would have a “significantly unfair and unreasonable effect upon policyholders and reinsurance cedants,” including Liberty Mutual, and is not in the best interest of the insurance buying public or the U.S. insurance industry.

Liberty Mutual maintained that the transaction would allow a Bermuda based entity to weaken the financial position of U.S. taxpaying companies and their policyholders. Furthermore, the company claimed it would establish an unfortunate precedent under which a financially strong company could walk away from potentially under-funded asbestos and environmental liabilities.

In February, there was a similar appeal for scrutiny of the deal from a group of four insurers. The law firm representing Allstate Insurance Company, American International Group Inc., Chubb & Son, and St. Paul Travelers filed a demand for Koken to closely examine the proposed sale by ACE Limited of three of its asbestos and environmental run-off subsidiaries, including the ACE American Reinsurance.

Was this article valuable?

Here are more articles you may enjoy.

From This Issue

Insurance Journal West April 18, 2005
April 18, 2005
Insurance Journal West Magazine

AAMGA Issue