XL Group Says Average Short-Line Railway Policy Is $32 Million
XL Group Plc. (XL), the only property-and-casualty insurer named in a class-action lawsuit for Canada’s worst rail disaster in a century, said that the average size of a railway policy is about $32 million.
“We’ve got experienced rail underwriters” who are under “strict risk-aggregation limits to control our exposures,” Gregory Hendrick, chief executive officer of insurance operations for XL Group, said today in a conference call following second-quarter earnings. The average policy coverage amount for North American short-line railroads is $32 million gross and $19 million net, he said.
XL Group said on July 10 that it’s among insurers of Montreal, Maine & Atlantic Railway Ltd., the company whose 73-car oil train derailed and crashed on July 6 in the center of Lac-Megantic, Quebec, killing 47 people and leveling much of the downtown. Two residents filed an application on July 15 for a class-action lawsuit, which names XL Group among other parties.
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