Insurer to protect US firms against asbestos claims
St George Re Limited, a new Bermuda-based insurer, Wednesday said it would start operations as the first company solely dedicated for offering US companies protection against asbestos claims.
Asbestos is a strong and incombustible fiber widely used in industry and construction until the 1980s. It can cause lung cancer and other respiratory diseases if its small particles were inhaled. But it may take up to 40 years to be diagnosed once a person has been exposed to asbestos.
St George Chief Executive Colin Barnes says they have arranged with units of Berkshire Hathaway Inc, the insurance and investment company run by Warren Buffett, for reinsurance coverage which would let them underwrite many claims.
In an interview, Barnes said that they were in the underwriting process for coverage of over $5 billion.
“The insurance was designed to remove uncertainty and provide resolution to historical corporate asbestos risk,” Barns said.
“We will offer insurance coverage to defend against risk of loss from future asbestos claims and the cost of disputing those claims. Those claims have so far cost companies around $70 billion and forced more than 70 companies into bankruptcy,” Barns said.
St. George Re’s founding investors are Context Capital Management LLC, Plainfield Asset Management LLC and Silver Creek Capital Management LLC.
St. George Re was founded in response to the demand from numerous companies faced with potential liability arising from asbestos-related personal injury claims,” Barnes said.
Asbestos risks have been projected to extend up to 2050 or beyond. Before St. George Re, the only option available to manage asbestos risks was self insurance.
Tags: Asbestos, Companies, Court, Insurance, Mesothelioma