SOURCE: U.S. RE Corporation, Inc.

U.S. RE Corporation, Inc.

July 28, 2011 14:29 ET

U.S. RE Selected by Danish Regulatory Authority to Study Reinsurance Capacity for Terrorism Risk

PEARL RIVER, NY--(Marketwire - Jul 28, 2011) - U.S. RE Corporation, international reinsurance brokers, has been selected by Finanstilsynet, the Danish Insurance Supervisory Authority, to conduct a study of terrorism risk reinsurance capacity in the Danish market, Brian McGuire, Senior Vice President and Director, announced.

"We're especially pleased to continue working with the Danish government to determine the private market capacity to reinsure terrorism risk," said Tal Piccione, Chairman/CEO of U.S. RE Companies, Inc., parent of U.S. RE Corporation. "This reaffirms our long standing commitment to the Danish market, which includes the formal presence of our European subsidiary U.S. RE ApS," he added. Piccione pointed out that U.S. RE also was retained earlier by the U.S. Treasury Department as its sole consultant in connection with the Terrorism Risk Insurance Program launched under the auspices of the Terrorism Risk Insurance Act (TRIA) in 2002 to protect against acts of terrorism for United States related interests.

Reinsurers operating in the Danish market are being asked to report the amount of reinsurance capacity they would be willing to commit to the Terrorism Insurance Pool for property insurance covering nuclear, biological, chemical, and radioactive risks to buildings, contents, railroad vehicles, motor and marine hull in Denmark along with loss of profit.

McGuire stated that participating companies will have access to a State reinsurance guarantee limited to DKK 15,000,000,000 annually on a stop loss basis. "The amount, in excess of which the guarantee attaches, is determined annually by the Ministry of Economic and Business Affairs based on recommendations of the Terrorism Insurance Council. This amount will be determined as the point at which the international reinsurance market can no longer provide sufficient reinsurance capacity to cover the NBCR risks," he noted in a communique that is being sent to risk takers. The Terrorism Insurance Pool will pay an annual risk premium to the Danish State for having the guarantee available. U.S. RE is also reviewing alternative mechanisms to provide capacity for the Terrorism Insurance Pool.

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