Bermuda’s ACE Ltd. increased its estimates of anticipated losses from the terrorist attacks in the U.S. from $400 million to $550 million, citing additional reinsurance claims as the principal factor.
The company’s estimates on its primary loss coverage remains unchanged at around $400 million net of reinsurance, but it acknowledged that a “second principal area of exposure to the tragedy comes from assumed reinsurance ceded to ACE by other insurance and reinsurance companies.” ACE does not usually reinsure this type of business through retrocessional coverage to the extent that it does its primary business.
Standard & Poor’s reacted swiftly to the news by placing ACE Bermuda Insurance Ltd, the company’s core subsidiary, and other units affected by the increased loss estimates on its CreditWatch with negative implications.
CEO Brian Duperreault reaffirmed the company’s basic financial strength, and the fact that it has ample liquidity to deal with the current situation, and said that ACE will continue “to provide valuable capacity to its clients in this redefined business environment.”|”ace, increases, loss, estimates, from, terrorist, attacks
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