Montpelier Re in arbitration with manufacturers IARD

 

Thursday, Mar 05,2009, 4:37:59 PM   Click:

Montpelier Re in arbitration with manufacturers IARD Meg Green
Montpelier Re Holdings Ltd said it is in arbitration with manufacturers IARD Ltd on two reinsurance contracts.

In its annual report filed with the U.S. Securities and Exchange Commission on February 27 Montpelier Re said after an attempt at mediation, which was required under his contract, was unsuccessful, he received notice of arbitration, in October 2007 Manufacturers of property and casualty, a subsidiary of Toronto-based Manulife Financial Corp.

The notice involves two contracts under which Montpelier purchased from manufacturers casualty reinsurance. Manufacturers P & C seeks to cancel, in whole or in part, the contracts at issue, and seeks further relief, including but not limited to attorneys' fees and interest.

Manufacturers Montpelier IARD has paid $ 25.5 million in respect of receivables sold under the contracts at issue, which is net of deposit, reinstatement and additional premiums, Montpellier said in its annual report.

In cases where manufacturers IARD is attributed to the termination of the contracts in question, the reduction of Montpellier of the total losses should be sold under the contracts in question, net of reinsurance premiums earned and accrued a total of 73 million dollars.

"We believe that the case of MPCL is unfounded and that the contracts at issue are fully applicable," Montpellier said in its annual report. "In addition, we intend to seek redress of MPCL our cost of lawyer and interest costs. In the circumstances, we believe that the results of the arbitration proceedings will not have a material adverse effect on our financial condition, results of operations or cash flows. "

Montpelier said he did not expect substantive until the hearings begin in early 2010.

A spokesperson for the company said Manulife does not comment on issues of arbitration.

Montpelier Reinsurance Ltd currently has a Best's financial strength rating of A-(Excellent). Manulife Group Manufacturers Life Insurance Co. currently has a Best's financial strength rating of A + + (Superior).

(By Meg Green, senior editor, BestWeek: Meg.Green @ ambest.com)

Copyright © 2009 hours Best Company, Inc., Montpelier Re Holdings Ltd said it is in arbitration with manufacturers IARD Ltd on two reinsurance contracts. In its annual report filed with the U.S.