!! History Commons Alert, Exciting News

Profile: Swiss Reinsurance

Swiss Reinsurance was a participant or observer in the following events:

It will later be speculated that, around this time, people with foreknowledge of the 9/11 attacks short sell reinsurance company stocks that are insuring either or both the airplanes and the buildings involved in the attacks. Munich Re, the largest European reinsurance company, loses 22 percent of its value in the two month before 9/11, with about half of that taking place in the week before the attacks. German authorities will later alert the Securities and Exchange Commission of “suspect movements” with Munich Re. [Agence France-Presse, 9/17/2001] Suspicious inquiries into the short selling of millions of company shares are made in France days before the attacks. [Reuters, 9/20/2001; San Francisco Chronicle, 9/22/2001] Munich Re stock will plummet after the attacks, as they claim the attacks will cost them $2 billion. [Dow Jones Business News, 9/20/2001] There is also suspicious trading activity involving reinsurers Swiss Reinsurance and AXA. These trades are especially curious because the insurance sector “is one of the brightest spots in a very difficult market” at this time. [Los Angeles Times, 9/19/2001] A source within AXA will later say, “There are indications that the shorting has been going on for some time. People inside the company could not understand why” there had been so much shorting of the stock in recent weeks. “This could give some explanation why the stocks were going down so much when there seemed to be no apparent reason.” AXA shares drop almost 10 percent in the week before 9/11, and will plummet afterwards. The attacks will cost the company up to $400 million because of its coverage of both airplanes and buildings. [Los Angeles Times, 9/18/2001]

Entity Tags: Swiss Reinsurance, AXA, US Securities and Exchange Commission, Munich Re

Timeline Tags: Complete 911 Timeline, 9/11 Timeline

An engineering report is released concluding that the destruction of one of the World Trade Center’s Twin Towers would have rendered the other unusable. Swiss Re and other insurance companies involved in the WTC coverage commissioned the study, which was written by California-based Exponent Failure Analysis Associates. It is released the same day as a report on the collapses by WTC leaseholder Silverstein Properties Inc. (see October 23, 2002). Contradicting the Silverstein report, it concludes: “[T]he collapse of one tower in the World Trade Center complex would have severely compromised the future viability of the entire complex.” This supports the insurance companies’ contention that the WTC attacks constituted one loss event, not two, as claimed by Silverstein Properties, thereby entitling Silverstein to a policy limit of $3.5 billion instead of $7 billion. The report, along with the underlying data, computer models, and engineering analyses, have been passed on to the National Institute of Standards and Technology (NIST), which is conducting an investigation into the collapses (see August 21, 2002). [Business Insurance, 10/23/2002; Insurance Journal, 10/23/2002; Engineering News-Record, 11/4/2002] In late 2004, a jury will rule that the WTC attacks were two events, and Silverstein Properties will be tentatively awarded $2.2 billion in insurance for the destruction of the Twin Towers. [BBC, 12/7/2004; Insurance Journal, 12/7/2004]

Entity Tags: Silverstein Properties, Exponent Failure Analysis Associates, Swiss Reinsurance, World Trade Center

Timeline Tags: Complete 911 Timeline, 9/11 Timeline

Ordering 

Time period


Email Updates

Receive weekly email updates summarizing what contributors have added to the History Commons database

 
Donate

Developing and maintaining this site is very labor intensive. If you find it useful, please give us a hand and donate what you can.
Donate Now

Volunteer

If you would like to help us with this effort, please contact us. We need help with programming (Java, JDO, mysql, and xml), design, networking, and publicity. If you want to contribute information to this site, click the register link at the top of the page, and start contributing.
Contact Us

Creative Commons License Except where otherwise noted, the textual content of each timeline is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike