Subject category:
Strategy and General Management
Published by:
IBS Case Development Center
Length: 13 pages
Data source: Published sources
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https://casecent.re/p/19170
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Abstract
Switzerland-based Converium Holdings, the ninth largest reinsurance company in the world, found itself in financial difficulty due to the massive losses incurred by its North American subsidiary in the aftermath of the 9/11 terrorist attacks in 2001. After revealing its losses, Converium undertook a reserve strengthening exercise, the magnitude of which shocked the reinsurance industry. In response, both Converium''s share price and investor ratings tumbled jeopardizing its existence. This case study helps in understanding the position of Converium and the various alternatives available to it to deal with the crisis. The case also provides scope for discussing the future of Converium as a viable entity.
Location:
Industry:
Size:
USD3.93 billion (2003 revenues)
Other setting(s):
2001-2004
About
Abstract
Switzerland-based Converium Holdings, the ninth largest reinsurance company in the world, found itself in financial difficulty due to the massive losses incurred by its North American subsidiary in the aftermath of the 9/11 terrorist attacks in 2001. After revealing its losses, Converium undertook a reserve strengthening exercise, the magnitude of which shocked the reinsurance industry. In response, both Converium''s share price and investor ratings tumbled jeopardizing its existence. This case study helps in understanding the position of Converium and the various alternatives available to it to deal with the crisis. The case also provides scope for discussing the future of Converium as a viable entity.
Settings
Location:
Industry:
Size:
USD3.93 billion (2003 revenues)
Other setting(s):
2001-2004