Exhibit 10.38
CNA Ref: 45 FIR 1999
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Reassured:- CNA Reinsurance Company Limited, London-
i.r.o. its Amsterdam, Zurich and Milan Branches
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 1999 UNDERWRITING YEAR OF ACCOUNT.
Type:- 50% 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 50% Quota Share of the Reassured's
participation subject to a maximum cession hereon of
GBP 2,000,000 ($3,000,000) 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 Ref: 45 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 888,888
($1,333,333).
Accounts:- Quarterly Accounts in GBP and US$ 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 January, February
and March, quarterly thereafter.
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 US$ 10m
Maximum aggregate cession per country or territorial
zone hereon GBP 20,000,000
Insolvency Clause G86.
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 2,000,000 for 50% Hereon.
(Net of Original Brokerage)
HEREON: 100% LaSalle Re Limited.
Signed /s/ X. X. Xxxxxxxx Dated 28/1/1999
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ADDENDUM ATTACHING TO AND FORMING PART OF
QUOTA SHARE AGREEMENT MADE BETWEEN
Reassured:- CNA Reinsurance Company Limited, London, - On behalf of
its Amsterdam, Zurich and Milan Branches. (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:- 50% 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/ Xxx X. Xxxxxx Dated 22 June 1999
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On behalf of LaSalle Re Limited, Xxxxxxxx, Bermuda. [LOGO]
Signed /s/ X. X. Xxxxxxxx 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, London,
On behalf of its Amsterdam, Zurich and Milan Branches.
(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.
XXXXXX SIGNING FOR 1999 UNDERWRITING YEAR OF ACCOUNT.
Type:- 50% Quota Share Treaty
________________________________________________________________________________
It is noted and agreed with effect from 12.01 am 1st April, 1999 this
Agreement is cancelled
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 50% of the Reassured's
estimate of losses outstanding at the 1st April, 1999
and thereafter shall be free of further liability
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 50% 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/ Xxx X. Xxxxxx Dated 22 June 1999
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On behalf of LaSalle Re Limited, Xxxxxxxx, Bermuda. [LOGO]
Signed /s/ X. X. Xxxxxxxx Dated 7th July, 1999.
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