International Risk Group Subsidiary, International Environmental Risk Underwriters, Underwrites $7.55 Million Environmental Liability Assumption

Business Wire, Feb 8, 2001

Business Editors

LITTLETON, Colo.--(BUSINESS WIRE)--Feb. 8, 2001

International Environmental Risk Underwriters (IERU), a subsidiary of International Risk Group, recently completed the insurance underwriting of a $7.55 million environmental liability assumption. The fixed price assumption of environmental liability provided the means to efficiently close a 430-acre real estate transaction between a Fortune 500 chemical company and a real estate developer based in Manhattan, N.Y.

The manuscripted insurance policy underwritten by IERU and issued by an A rated international insurance company based in New Jersey, along with dedicated capital backing, securitized an environmental indemnity for known and unknown risk, including toxic torts and Natural Resource Damages. The indemnity is a vital component of the environmental liability assumption contract. The environmental insurance was initially assessed and brokered by Cherokee Environmental Risk Management (CERM), the preeminent environmental insurance brokerage and risk management company in the United States.

IERU and CERM used their proprietary environmental knowledge to validate the actuarial risk modeling approach for this contractual environmental liability assumption. This process allowed the insurance company to determine that the exposures were acceptable and provide support for the terms and conditions of the environmental liability assumption contract.

International Risk Group and its two subsidiaries, International Environmental Risk Underwriters (IERU) and International Assumption Partners (IAP) are based in Littleton, Colo. International Risk Group provides a valuable range of solutions in risk underwriting and transfer, environmental liability management and fixed price contractual assumption of environmental liability.

Cherokee Environmental Risk Management, the environmental risk management and environmental insurance brokerage subsidiary of Cherokee Investment Security, a privately held company, is based in Greenwood Village, Colo.