Search
 

Insurer Braces for $300-Mil Loss; Won't Invoke War Acts Clause

BOSTON-Liberty Mutual Group expects to pay off $200 to $300 million in claims related to last week's terrorist attacks and announced that it will not deny claims based on war acts exclusions.

By Glen Thompson | Updated on September 19, 2001

BOSTON-Liberty Mutual Group is looking at after-tax net losses in the neighborhood of $200 million to $300 million resulting from claims related to last week’s bombings, the company announced yesterday. But in a high-road move, the firm says it will not attempt to duck claims if the government deems the attacks an act of war.

Company chairman, president and CEO Edmund Kelly, in yesterday’s statement, says the firm has “the financial strength to absorb these losses,” and that it is “already meeting our obligations to help our policyholders recover as quickly as possible.” With regard to widespread speculation that insurance companies will attempt to invoke war-acts exclusions as a shield from potential attack-related claims, Kelly says, “We have a very strong capital position and the liquidity to meet our obligations to policyholders. These situations are what we are in business to handle.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.