Old year losses hit Converium

When Zurich Financial Services floated its third party reinsurance operations under the name of Converium in December last year, it retained certain reinsurance liabilities and committed to provide some indemnities to the new reinsurer. But most of the in force reinsurance account, including previous year liabilities, transferred to Converium, and so this new reinsurer is suffering from the deterioration of old year business in much the same way as long-established reinsurers are.