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Case Study: JLT Re's Reserve

Satisfactory Essays

JLT Re’s reserve notice dated 12/20/16 notes Odyssey Reinsurance Company’s (Odyssey) 30% ceded share of this loss excess $1,000,000 is $219,087. However, my review of the cede’s, IAT / Harco National (IAT) supporting documentation notes a total incurred of $2,848,432.43, based on this information, Odyssey’s correct 30% share excess of $1,000,000 is $543,791.65 ($525,000 Loss & $18,791.65 pro rated expense). Please advise whether you’re in agreement with our calculations. On 10/13/16, IAT received an adverse verdict in the amount of $2,305,376, with the likelihood of the plaintiff being awarded additional monetary damages. IAT reported their course action was to attempt settlement to mitigated any further awards and if necessary file an appeal.

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