Swiss Re seeks to limit exposure to attacks

Swiss Re says the two attacks against the World Trade Center were one event Keystone Archive

Swiss Re is seeking to put a ceiling on its losses from the attacks on the World Trade Center.

The world’s second largest re-insurer on Monday sought a “declaratory judgement” from a United States court over whether the September 11 attacks on the twin towers constituted a single insured event, or two, given that two aircraft were crashed into the buildings.

The move is aimed at limiting insurers’ exposure to $3.5 billion – the insured value of the World Trade Center.

Swiss Re’s move comes after Larry Silverstein, the main leaseholder of the World Trade Center, suggested the assault on the twin towers had been two separate attacks, implying that he could make two claims worth $7 billion.

His firm, Silverstein Properties, and Westfield America purchased the twin towers last July for $3.2 billion.

Liable for fifth of damages

Swiss Re is liable for 22 per cent of the property damage insurance cover on the complex, with the rest shared between about 20 insurers.

In its court filing, Swiss Re “seeks a declaration that the damage… is one insurance loss and not multiple and separate and unconnected losses as Mr Silverstein is claiming in the media”.

Silverstein Properties responded by saying that Swiss Re’s actions were “absolutely without merit” and that it was trying to evade its obligations.

Swiss Re said on Monday that the policy had not been confirmed at the time of the attack, and that it was honouring its commitment on the strength of an outline of the policy – known as a placing slip – provided by the broker.

Last month, Swiss Re said the twin towers disaster would cost it SFr2 billion – two-thirds of last year’s net profit. Its exposure could be considerably more if Silverstein were able to make two claims.

swissinfo