2003 JAPAN LAW: REINSURANCE
Keywords: Reinsurance, Insurance
Copyright 2004. All rights reserved Attorney Roderick H. Seeman
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Sompo Insurance Japan has won a fruitless victory in court over Fortress Re Inc. when the latter was ordered by the court to pay $1.12 billion for losses incurred in part on covering September 11, 2001 damages. The court found that in the re-insurance contracts Fortress Re had engaged in fraudulent activities. The problem is that Fortress Re does not have much ability to pay. Primary recovery is likely only from suits against its executives and its auditors. Hard to get billions from them.