Reinsurance - Creation and Incorporation of Warranties

(HIH Casualty and General Insurance Ltd v New Hampshire Insurance Co [2001] EWCA Civ 735, Court of Appeal, shortly to be reported in [2001] Lloyd’s Rep IR))

The Court of Appeal in HIH Casualty and General Insurance Ltd v New Hampshire Insurance Co [2001] EWCA Civ 735 and shortly to be reported in [2001] Lloyd’s Rep IR has upheld much of the first instance judgment of Aikens J, In the January 2001 issue of Insurance Law Monthly there was extensive discussion of the decision of Aikens J in HIH Casualty and General Insurance Ltd v Chase Manhattan Bank , July 2000 [2001] Lloyd’s Rep IR 191 . The reinsurance sequel to that case, HIH Casualty and General Insurance Ltd v New Hampshire Insurance Co (also forthcoming in [2001] Lloyd’s Rep IR) was decided by David Steel J on 4 December 2000. As with the Chase Manhattan Bank case, the court was asked to determine a series of preliminary issues on assumed facts: the issues were numerous, but the most important of them were concerned with the manner in which warranties may be created in a direct policy and then incorporated into reinsurance.