SIRIUS INTERNATIONAL INSURANCE CORPORATION v FAI GENERAL INSURANCE CO LTD [2003] EWCA Civ 470

[2004] Lloyd's Rep IR 47

COURT OF APPEAL

Before Lord Justice May, Lord Justice Carnwath and Mr Justice Wall

Reinsurance - Reinsurer fronting for retrocessionaire - Letter of credit opened by retrocessionaire - Reinsurer not to draw down without retrocessionaire’s consent - Retrocessionaire going into liquidation - Tomlin order acknowledging indebtedness of retrocessionaire to reinsurer - Whether proceeds of letter of credit belonged to retrocessionaire or to reinsurer - Whether terms of letter of credit broken.