Montpelier Reinsurance, a subsidiary of Montpelier Re Holdings, has prevailed in its previously disclosed arbitration proceedings with Manufacturers Property & Casualty Limited (MPCL).
The arbitration proceedings involved a dispute concerning two contracts pursuant to which Montpelier Re purchased reinsurance protection from MPCL in 2005 (the disputed contracts).
Montpelier Re has said that the award dismisses MPCL’s claim for rescission of the disputed contracts and calls for MPCL to pay Montpelier Re the outstanding losses on the disputed contracts plus accrued interest through the date payment is made. The amount of accrued interest due Montpelier Re is approximately $2.5m.
Montpelier Reinsurance also reported that it does not anticipate any increase in its net loss estimates associated with the Chilean earthquake and windstorm Xynthia over those previously recorded as of March 31, 2010. The company also reaffirms its previously announced pre-tax net loss estimate of $20m from the Deepwater Horizon rig loss.
Montpelier Re Holdings, through its operating subsidiaries, is a provider of global property and casualty reinsurance and insurance products.