Exhibit 10.32
CNA Reference: 44 FIR 1999
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Reassured:- CNA Reinsurance Company Limited.
International Treaty Department, London, England.
Period:- Continuous contract in respect of all business written
by the Reassured and signed into their 1994 and
subsequent Underwriting Years of Account.
Subject to three months prior notice of cancellation
to expire at 31st December any year.
HEREON: SIGNING FOR 1999 UNDERWRITING YEAR OF ACCOUNT.
Type:- 40% Quota Share Treaty
Class:- The Reassured's Account of PROPERTY CATASTROPHE
EXCESS OF LOSS TREATIES
Excluding the Reinsured's interest whether direct or
by way of reinsurance in loss arising from claim or
claims against an Insured by another party or parties.
Notwithstanding the foregoing this reinsurance shall
not exclude:
a) Workers' Compensation and/or Employers' Liability
losses arising from the following perils:-
Fire, Lightning, Explosion, Structural Collapse,
Windstorm, Hail, Flood, Seismic Activity, Volcanic
Eruption, Collision, Riots, Strikes, Civil Commotion,
Malicious Damage.
b) Any Physical Damage and/or Consequential loss coverage
contingent thereon effected by an Insured on behalf of
another party.
Territorial Scope:- Worldwide excluding USA & Canada, other than
incidental.
Treaty Detail:- To take 40% Quota Share of the Reassureds
participation subject to a maximum cession hereon of
GBP 1,600,000 ($2,400,000) any one programme. Cessions
in currencies other than sterling at rates of exchange
as used in the books of the Reassured.
Rate:- Original Net Premium as Original.
Administrative
Processing Fee:- 7.00% on Original Net Rate.
CNA Reference: 44 FIR 1999
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Profit Commission:- 20% on an Underwriting Year Basis. Losses carried
forward to extinction. To be calculated 12 months
after the close of the Underwriting Year and annually
thereafter subject to a Reinsurer expense allowance
of 25%.
Taxes:- As may be applicable on the original business.
Premium Reserve:- Not applicable.
Loss Reserve:- As may be applicable on the original business.
Portfolio:- Agreed, if and when requested by the Reassured, to
close each Underwriting Year of Account at any time
after the end of the third year at an amount
sufficient to cover all outstanding losses as may be
mutually agreed.
Cash Loss:- At Reassured's discretion, Minimum GBP 2,666,666
($4,000,000).
Accounts:- Quarterly Accounts in GBP and US$ separately on each
year of account. Presentation within 45 days of end of
quarter with settlement due within 30 days thereafter.
General Conditions:- Monthly bordereaux of risks ceded
Full Reinsurance Clause
War Exclusion G51
Nuclear Energy Risks Exclusion Clause
(Reinsurance) 1984, NMA 1975 (Japanese Amendment)
Nuclear Incident Exclusion Clauses - Physical
Damage Reinsurance - USA & Canada
Excluding Financial Guarantee and Insolvency
Maximum Net Premium ceded hereon GBP 14,600,000
Normal maximum aggregate cession per country or
territorial zone hereon GBP 24,000,000 with exception
of the United Kingdom where the maximum aggregate
to be ceded is GBP 40,000,000
Special cessions to be agreed by Reinsurers prior to
binding.
Multi-year policies accepted by annual re-signing.
Wording:- As before as far as applicable, any amendments to be
agreed.
Information:- 1999 E.N.P.I. GBP 5,000,000 for 40% Hereon.
(Net of original brokerage)
HEREON: 100% LaSalle Re Limited
Signed /s/ ▇. ▇. ▇▇▇▇▇▇▇▇ Dated 28/1/1999
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ATTACHING TO AND FORMING PART OF
QUOTA SHARE AGREEMENT MADE BETWEEN
Reassured:- CNA Reinsurance Company Limited -
International Treaty Department, London, England.
(Hereinafter called the "Reinsured")
and
Reinsurers:- LaSalle Re Limited
(Hereinafter called the "Reinsurers")
Period:- Continuous contract in respect of all business
written by the Reassured and signed into their
1994 and subsequent Underwriting Years of Account
Subject to three months prior notice of
cancellation to expire at 31st December any year.
HEREON: SIGNING FOR 1999 UNDERWRITING YEAR OF
ACCOUNT.
Type:- 40% Quota Share Treaty
________________________________________________________________________________
It is noted and agreed with effect 1st January, 1999 the following changes:-
Administrative
Processing Fee:- 7.00% on Original Net Rate
Profit Commission:- The Reinsurers shall pay the Reinsured a Profit Commission
of 20.00% calculated on the net profit, if any, under this
Agreement in any one Underwriting Year of Account. Such
profit commission being calculated as below and payable
for each Underwriting Year of Account separately after the
close of such Underwriting Year of Account.
The first calculation of profit commission for each
Underwriting Year of Account shall be made 24 months after
the inception of such Underwriting Year of Account and
annually thereafter.
For the purposes of calculating the profit commission the
profit will be deemed to be the difference between Income
and Outgo as calculated below.
INCOME
Original Net Premiums, as defined in PREMIUM, for the
current Underwriting Year of Account.
OUTGO
a) Losses paid in respect of the Underwriting Year of
Account under consideration.
b) Commission as defined in the treaty wording.
c) 100% of the estimated liability for losses outstanding
in respect of the Underwriting Year of Account under
consideration.
d) Reinsurers' expenses calculated at 20.00% of INCOME.
e) Deficit, if any, from the profit commission statement
for the previous Underwriting Years of Account.
In the event of any premiums or salvages being received, or
claims or returns being payable subsequent to the calculation
of profit commission, then such profit commission shall be
adjusted as if such additional items had been included in the
original calculation and the Reassured credited or debited as
the case may be, in the next profit commission calculation.
In the event of a profit commission statement showing a
deficit for any one Underwriting Year of Account, the total
amount of such deficit shall be debited to the profit
commission calculation for the ensuing Underwriting Year or
Years of Account.
All other terms and conditions remain unaltered.
On behalf of CNA Reinsurance Company Limited, London, England.
Signed /s/ ▇▇▇ ▇. ▇▇▇▇▇▇ Dated 22 June 1999
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On behalf of LaSalle Re Limited, [LOGO]
▇▇▇▇▇▇▇▇, Bermuda,
Signed /s/ ▇. ▇. ▇▇▇▇▇▇▇▇ Dated 7th July, 1999.
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ADDENDUM ATTACHING TO AND FORMING PART OF
QUOTA SHARE AGREEMENT MADE BETWEEN
Reassured:- CNA Reinsurance Company Limited -
International Treaty Department, London, England.
(Hereinafter called the "Reassured")
and
Reinsurers:- LaSalle Re Limited
(Hereinafter called the "Reinsurers")
Period:- Continuous contract in respect of all business written by
the Reassured and signed into their 1994 and subsequent
Underwriting Years of Account
Subject to three months prior notice of cancellation to
expire at 31st December any year.
HEREON: SIGNING FOR 1999 UNDERWRITING YEAR OF ACCOUNT.
Type:- 40% Quota Share Treaty
________________________________________________________________________________
It is noted and agreed with effect from 12.01 am 1st April, 1999 the percentage
of the Quota Share is reduced to 15.00%.
As a consequence of this change the following should be noted:-
Loss Portfolio:- The Reinsurer shall be debited with a portfolio of loss
withdrawal calculated at 25% of the Reassured's estimate of
losses outstanding at the 1st April, 1999 and thereafter
shall be free of further liability in respect of the
percentage share reduction. The Reinsurer shall continue to
be liable for all incurred losses for their 15.00% share at
the date of commencement of this Agreement.
Profit Commission:- The Reinsurers shall pay the Reassured a provisional Profit
Commission of 20.00% calculated on the net profit expected,
under this Agreement in respect of the reduction of 25.00%
in the 1999 Underwriting Year of Account. Such profit
commission being calculated in accordance with the formula
previously agreed.
Any further adjustment to the calculation of the provisional
profit commission statement will be made 24 months after the
inception of the 1999 Underwriting Year of Account and
annually thereafter.
All other terms and conditions remain unaltered.
On behalf of CNA Reinsurance Company Limited, London, England.
Signed /s/ ▇▇▇ ▇. ▇▇▇▇▇▇ Dated 22 June 1999
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On behalf of LaSalle Re Limited, ▇▇▇▇▇▇▇▇, Bermuda. [LOGO]
Signed /s/ ▇. ▇. ▇▇▇▇▇▇▇▇ Dated 7th July, 1999.
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