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Member, Beacon International Group, Ltd.
HAMILTON, Bermuda—Runoff company Tawa P.L.C. has formed a specialist reinsurer to provide protection to Pennsylvania National Mutual Casualty Insurance Co. from adverse development in its lead paint exposures.
London-based Tawa has set up a Bermuda-based special-purpose firm QX Reinsurance Co. Ltd. to provide reinsurance for lead paint risks underwritten by Harrisburg, Pa.-based Penn National Insurance between 1991 and 1997, primarily for real estate in and around Baltimore.
The maximum reinsurance liability of $100 million arising from the contract has been collateralized by a trust fund in QX Re, which was financed by the reinsurance premium and an in aggregate equity injection of $90 million from Tawa, the company said in a statement Monday.