Re recoverables dispute at Lloyd's. (reinsurance) (Eagle Star Insurance Co.)

National Underwriter Property & Casualty-Risk & Benefits Management, February, 1993 by Howard, Lisa A.

LONDON - A Lloyd's syndicate recently won a lawsuit against Eagle Star Ins. Co. in a dispute about reinsurance recoverables which has far-reaching implications in the London market. For just over 18 years, the London-based Eagle Star had regularly paid claims on a run-off policy it sold to Syndicate 640 in 1973.

Most of those claims involved under this policy emanated from American, long-tail, casualty business, said Paul Toomey, lead underwriter for Syndicate 640, which closed down last year. The policy was to cover all claims, expenses and outgoings for 1965 and prior years, said Mr. Toomey, who noted that his father was lead underwriter for the syndicate when the policy was purchased in 1973 for 1.5 million [pounds]. According to Mr. Toomey, his father...

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