Swiss Re withdraws 'misleading' memo

Chiefs at life insurer Scottish Provident have opened discussions with reinsurer Swiss Re after a "badly worded" memo raised fears over cover offered to troops.

Swiss Re has withdrawn a document setting out underwriting terms over fears that it would exclude cover for many higher-risk groups.

But Scottish Provident denied reports that the memo had prompted it to withdraw cover.

"Swiss Re make their commercial decisions, we make ours," a Scottish Provident spokeswoman told BBC News Online.

The insurer had the option of a number of underwriters, and did not necessarily re-insure all its business, she said.

'Badly worded'

Swiss Re said its memo had been misinterpreted.

"The statement we issued to clients was very badly worded," a spokesman told the Daily Telegraph.

"We will rewrite and reissue it."

The firm, which expects to lose $1.25bn covering claims stemming from last month's terror attacks on the US, said the memo's terms had been designed to clamp down on unscrupulous salespeople.