Protector Forsikring

Legal Proceedings Report • Nov 17, 2017

Reinsurance disagreement related to Grenfell Tower Property loss

Reinsurance disagreement related to Grenfell Tower Property loss

Our property reinsurer has raised questions regarding the Grenfell Tower loss split as a result of a different interpretation of our reinsurance contract.

Protector is of the view that the contract regulating our relationship is clear and has acted accordingly.

Protector's view is supported by external legal opinions.

Together with our reinsurance broker, Protector has entered into a dialogue with our reinsurer to understand their views and to find a solution. Since no solution has been made, we would like to update the market about the situation.

The maximum potential loss for Protector is estimated to an additional NOK 100 million. Protector will however, based on today's knowledge, not increase the reserved losses on the claim in Q4 2017.

Protector will continue the dialogue with the reinsurer, but cannot rule out that the matter may be referred to an arbitration in Oslo which in such case is likely to take several months to conclude.

Our client, Royal Borough of Kensington and Chelsea, will be unaffected by the discussion on the reinsurance side, and our key focus going forward is on the victims of the tragedy.

Our working relationship with our reinsurer is still considered to be constructive. Nevertheless, complex legal matters sometimes call for a dialogue or an objective third party decision.

A phone conference will be hosted by Protector Friday 17th at 11:30 Oslo time.

Call in information will be given in a separate market notification at 10:30 Oslo time.