April 4, 2002 - Zurich Financial Services, XL Capital Ltd, Swiss Re, SCOR, Hannover Re and Allianz have established a new company to insure property against acts of terrorism. The company, named Special Risk Insurance and Reinsurance Luxembourg S.A. (SRIR), will provide limited coverage for physical loss or damage to insured properties and has a total committed capital of EUR 500 million consisting of subscribed and committed authorized capital. Zurich Financial Services, XL Capital Ltd, Swiss Re, Hannover Re and Allianz each hold stakes of 18.2 percent in SRIR, while SCOR holds 9.1 percent. The company will operate independently of its founders with separate management and underwriting teams based in Luxembourg.
The investors believe that SRIR will help address the shortage of terrorism insurance capacity available in the commercial market following the terror attack in the United States.
Policies offered will only cover damage to property resulting directly from an act of terrorism and will be focused on Europe. Business interruption and liability losses will not be insured. The company is committed to controlling its risk accumulation and has therefore adopted specific criteria to control and limit its exposure. Within any 600 meter radius from a covered property the coverage will be limited to EUR 275 million.
The establishment of SRIR signals the confidence of the investors in the development of workable private solutions to the provision of terrorism cover. However, private solutions remain complementary to state sponsored schemes established prior to and since September 11, 2001 and are not meant to replace them.
The company will accept business through all recognized insurance distribution channels, including insurance and reinsurance brokers. In addition, it intends to offer coverage directly and through banks as well as insurance and reinsurance companies. SRIR plans to start underwriting business during the second quarter of 2002, subject to approval by the regulatory authority in Luxembourg.
For further information please contact:
Zurich Financial Services:
Claudia Stülten, Media Relations +41.1.625-2655
Reinhard Stary, Investor Relations +41.1.625-2663
XL Capital Ltd:
Gavin R. Arton, Investor Relations +441.294-7104
Roger R. Scotton, Media Relations +441.294-7165
Swiss Re:
Media Relations +41.43.285-2076
Investor Relations +41.43.285-4444
SCOR:
Delphine Deleval, Press Relations +33.1.46987164
Valentine Semet, Investor Relations +33.1.46987232
Hannover Re:
Ralf Arndt +49.511.5604-1500
Allianz:
Jörg E. Allgäuer +49.89.3800-2628
