Report Japanese Insurer Files Suit against Fortress Re and Accountants

December 30, 2002

Japan’s Aioi Insurance Co. has filed a lawsuit in North Carolina against Fortress Re and its accounting firm, Deloitte & Touche LLP, alleging improper acts by the privately owned reinsurer’s directors and shareholders in regard to losses it suffered from several disasters in the U.S.

According to reports from Reuters and Dow Jones Newswires the Japanese P/C insurer expects to post 148 billion yen ($1.23 billion) in losses from reinsurance placements handled by Fortress, including several relating to Sept. 11 and an unrelated air crash in Queens two months later.

No details of the complaint are yet available, but the reports indicate that Aioi has charged the directors with acting improperly in placing the coverage and of making “irregular” transactions. The complaint did not specify the amount of damages sought.

Aioi’s complaint is the second one filed by a Japanese insurer against Fortress. Nissan Fire & Marine Insurance Co. Ltd. (now part of the Sompo Group) sued the reinsurer on similar charges last January.

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