HARTFORD SECURES $1.5BN REINSURANCE COVER FOR A&E RESERVES

US insurer The Hartford has secured up to $1.5bn of reinsurance protection to cover against negative asbestos and environmental reserve development. The Connecticut-based insurance group said it had paid a premium of $650m for the excess-of-loss coverage, which has been placed with National Indemnity, part of the Berkshire Hathaway group. The insurer said it will continue to handle claims related to the exposures and will retain the risk of recoveries under third-party reinsurance contracts. The majority of the liabilities relate to contracts underwritten before 1985. The Hartford said its fourth-quarter earnings will include a charge of $423m after tax related to the reinsurance purchase.