Trenwick Group, Ltd.(fka TWKGQ)

[lifegear]

RE: 5 Contingent Assets...

Looking back at the news on the Chapter 11 filings, I've noticed that there are five NON-BANKRUPT subsidiaries, 4 of which are in runoff and the last one is the Lloyd's operations. ALL THESE FIVE SUBSIDIARIES ARE NOT SUBJECT TO THE PROCEEDINGS IN THE BANKRUPTCY COURT OR THE SUPREME COURT OF BERMUDA AND THEIR OPERATIONS CONTINUE.

If each of these subsidiaries is required to maintain a certain amount of reserves to meet insurance liabilities during the course of the runoff, whatever is left after successful runoff will revert back to the shareholders. Syndicate 839 alone (aka the Lloyd's operations imho) had $583M in gross reserves as of the end of 2007. Due to RITC reinsurance to close for the year 2001, it allowed the company to release some funds out of the reserves to pay off creditors and the initial distribution to preferred shareholders. What more can we expect out of the 4 remaining subsidiaries in runoff with possible combined reserves in the billions? We could be looking at another NYSE stock again if these subsidiaries end up renewing their underwriting businesses imho.

What if the contingent assets are the successful runoffs for these subsidiaries:

1. Trenwick America Reinsurance Corporation

2. The Insurance Corporation of New York

3. Dakota Specialty Insurance Company

4. LaSalle Re Limited

5. Lloyd's operations

http://www.defaultrisk.com/news_2003_q3.htm

Trenwick Files Chapter 11 – August 21, 2003
Trenwick Group, Ltd. stated that it and its affiliates, LaSalle Re Holdings Limited and Trenwick America Corporation and collectively with LaSalle Re Holdings and Trenwick, as a step in its previously announced restructuring and in accordance with its August 6 letter of intent with U.S. Bankruptcy Court for the District of Delaware. Additionally, Trenwick and LaSalle Re Holdings are in the process of filing proceedings in the Supreme Court of Bermuda, known under Bermudian law as "winding up", as a further step in the restructuring and in accordance with the previously announced Letter of Intent. Trenwick's insurance company subsidiaries, Trenwick America Reinsurance Corporation, The Insurance Corporation of New York, Dakota Specialty Insurance Company and LaSalle Re Limited, all of which are in runoff, and its Lloyd's operations are not subject to the proceedings in the Bankruptcy Court or the Supreme Court of Bermuda and their operations continue.