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15th of May 2012

JPMorgan Chase novates liabilities

Matthew Broomfield 12/10/2011

JP Morgan Chase & Co has novated liabilities from its Bermudan captive into its Vermont-based captive.
 
Hatherley Insurance’s portfolio consists of mainly liability coverages, including high deductible reimbursement policies issued to JPMorgan Chase, which covers workers’ compensation, auto liability and general liability. These have been novated and transferred to Park Assurance Company.
 
AM Best has concurrently withdrawn the ratings of Hatherley and affirmed the financial strength rating of A (excellent) and issuer credit rating of “a” of Park. The outlook for both ratings is stable.
 
Park provides JPMorgan Chase with global property coverages, including coverages against terrorism losses and going forward, high deductible reimbursement policies covering workers’ compensation, auto liability and general liability. Therefore, it is a key component of JPMorgan Chase’s risk management strategy and benefits from the group’s significant financial resources.
 
Park has large gross underwriting exposures as it offers very high insurance limits and insures some properties with substantial insured values. It is very dependent on reinsurance in order to offer its various property programs and high limits, said AM Best.
 
Hatherley has applied to the Bermuda Monetary Authority (BMA) to surrender its licence, and the BMA has issued an order cancelling Hatherley’s registration.

Tags: Bermuda, JP Morgan, Novation, Vermont

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