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29 Nov 2013 16:56
Tawa plc
Tawa plc ("Tawa")
Trading update
QX Re was set up as a wholly-owned Bermudian regulated special purpose insurer in 2011 to provide a $99 million reinsurance facility for a book of lead paint exposure of Pennsylvania National Mutual Casualty Insurance Co. ("Penn National").
The Board of Tawa plc has today recognised that there is a strong probability that the reserves of QX Re may need to be increased to a level that exhausts the entire reinsurance facility as a result of significantly higher claims experience than previously anticipated. Thereafter loss deterioration reverts back to Penn National.
This additional loss estimate is based upon a preliminary data analysis and a more reliable loss estimate will not be available until the 2013 reserving exercise is concluded; however it is anticipated to lead to a loss of $28 million in the books of Tawa plc.
Tawa has commenced legal action against Penn National in the Delaware federal court seeking to rescind the reinsurance treaty on grounds of fraud.
Enquiries:
Gilles Erulin, Chief Executive, Tawa plc | 020 7068 8000 |
Michael Gaughan, FWD PR | 020 7623 2368 |
James Britton or Guy Wiehahn, Peel Hunt LLP (nominated adviser and broker) | 020 7418 8900 |
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