Silverstein Responds to Swiss Re with WTC Payment Demand

Silverstein Properties responded to Swiss Re’s declaratory relief action on Wednesday with a renewed demand for payment in order to begin the reconstruction of the World Trade Center.

Larry Silverstein strongly disagrees with Swiss Re’s position that the attacks of Sept. 11 constituted a “single occurrence”, and has asserted that, as two planes were involved, there were two loss events and both should be fully reimbursed. The difference of opinion is worth $3.56 billion, and Silverstein in essence asked the world’s second largest reinsurer to “show me the money.” His company’s response asked for immediate payment of Swiss Re’s 22 percent share of the loss of one building, around $800 million, while the court determines if a second loss event occurred.

Swiss Re responded in a written statement from Jacques Dubois, head of its North American subsidiary, who said that “Swiss Re’s stated goal is to resolve these matters more quickly than would have likely occurred otherwise.” He added that the company was fully committed to pay its obligation for the loss of one building, and expected the court to confirm its position that this is its exposure limit. He didn’t indicate when Swiss Re would pay that amount, however, as Silverstein demanded.