Insurers May Reimburse Tobacco Companies
European and U.S. insurance companies may be forced to reimburse tobacco companies paying out billions of dollars in settlements and compensation claims in the United States, an industry analyst said Thursday.
Paul Hodges of investment bank Schroders said in a report that many industry giants had provided insurance to tobacco manufacturers that either specifically covered, or did not fully exclude, the health liability risks associated with smoking.
The report named some of the companies involved as Royal & Sun Alliance, CGU, Lloyd's of London, Zurich Financial Services, Liberty Mutual and The St. Paul Companies.
It said it was clearly in tobacco manufacturers' interests to seek reimbursement from their insurers as claims against them mount.