Tawa PLC Trading update (3533U)
November 29 2013 - 11:56AM
UK Regulatory
TIDMTAW
RNS Number : 3533U
Tawa PLC
29 November 2013
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
This information is provided by RNS
The company news service from the London Stock Exchange
END
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