World Trade Center ruling boosts Swiss Re

Insurance giant Swiss Re received a boost this week, after a New York court dismissed an appeal by the World Trade Center’s leaseholder to treat the September 11 attack as two separate incidents.

The Swiss-based company is the most exposed of around 20 insurers facing claims for damages on the destroyed towers.

Late last week, a New York appeals court rejected a claim from Larry Silverstein, who holds a 99-year lease on the WTC site, that the attacks constituted two occurrences for insurance purposes.

Insurers maintain Silverstein can only claim a single event on his $3.5 billion (SFr4.7 billion) policy.

If Silverstein succeeds in having the attacks classified as two separate events, he will be able to claim double the amount.

The appeals court stopped short of deciding the issue itself. This will be left to a federal court jury, which is expected to rule on the case next year.

Swiss Re, however, welcomed the latest court decision.

“It has now been conclusively determined that at least five insurers [approximately a quarter of those participating on the WTC program]… are liable for only one policy limit,” the company said in a statement.

Jury trial

Swiss Re faces a 22 per cent exposure on the insurance policies covering the WTC site.

Although Silverstein has failed to convince the appeal court, the issue could still be put before a New York jury.

Jacques Dubois, head of Swiss Re’s US division said the company was confident Silverstein would fail.

“Every court that has considered Silverstein’s argument to recover beyond his stated insurance policy limit has rejected it outright,” Dubois said.

“We are confident that a jury will do the same.”

Shares in Swiss Re rose to close at SFr86.10 on Monday.

swissinfo with agencies

WTC brief

The leaseholder of the World Trade Center claims September 11 constituted two separate events because the twin towers were destroyed.

Insurers maintain Silverstein can only claim a single event on his $3.5 billion (SFr4.7 billion) policy.

If Silverstein succeeds in having the attacks classified as two separate events, he would be able to claim double the amount.