Standard & Poor’s announced that it now considered its CreditWatch already in place on Le Mans Re to be “developing” rather than “positive” primarily due to its loss estimates from the World Trade Center disaster, which range between $38 and $54 million.
Le Mans Re is 51 percent owned by French insurer Les Mutuelles du Mans Assurances (MMA) and 49 percent by Bermuda-based XL Capital, but the companies have concluded an agreement for XL to purchase an additional 18 percent stake from MMA, which would give it a 67 percent share and control of the company, effective January 1, 2002.
Part of the purchase agreement is a commitment by XL and MMA to either furnish additional capital and/or additional reinsurance treaties to neutralize the impact of the September 11 losses.
S&P estimated that the impact of the disasters on Le Mans Re’s would reduce its capitalization by approximately 20 percent.
Topics Profit Loss
Was this article valuable?
Here are more articles you may enjoy.
PE-Backed Insurance Broker Hub International Files Confidentially for US IPO 
New Autopsy of Baby Killed by Police in Mississippi Deepens Outrage 
Premiums Will Skyrocket by 2035, and Discounts Not Enough for Wind Mit, Studies Say 
CFC Names Former Direct Line Exec Winslow as Group CEO, Succeeding O’Shea 
