As insurers brace for potential claims from the Las Vegas shooting last month, it has emerged that AIG leads the MGM Resorts International excess casualty tower and also has a significant participation on the cover bought by entertainment company Live Nation.
According to sources, AIG wrote the first $25mn of the $750mn excess casualty placement for MGM, which owns the casino hotel the shooter fired from, and the music venue that was targeted.
The US insurance giant is understood to have written the first excess layer and a 60 percent share of the $125mn xs $125mn layer through its National Union Fire Insurance subsidiary (see graphic).
Meanwhile, AIG's Cat Excess unit also features on the top $50mn xs $175mn layer of the $225mn excess casualty tower for Live Nation, which put on the Route 91 Harvest Festival that was the target of the mass-shooting tragedy.
Aon is thought to have been the broker on both placements.
AIG had the biggest combined participation on the placements, with $150mn of total cover, followed by XL, which wrote $120mn across the two towers.
XL wrote the $25mn xs $300mn layer of the MGM placement. It also took a 25 percent share of the $100mn xs $450mn layer and a 50 percent share of the $50mn xs $700mn layer of the tower.
It also wrote the full $20mn xs $15mn layer and 50 percent of the $50mn xs $125mn layer of the Live Nation cover.
Chubb had the third largest participation across the two towers at $115mn.
It led the Live Nation excess cover with a $15mn layer above the primary and took 40 percent of the $125mn xs $325mn layer, as well as the full $50mn xs $550mn stretch on the MGM cover.
Sompo International wrote $75mn of cover across the two towers, while Liberty-Ironshore had a $65mn participation.
Aspen, Allied World, CV Starr, IronStarr, Great American, Lloyd's and Swiss Re Corporate Solutions all wrote $50mn each on the placements, some writing on one and others on both (see table).
Argo, Berkshire Hathaway, CNA and Everest each wrote $25mn on one of the towers.
All of the carriers involved and the towers' broker Aon either declined to comment or did not respond to requests for comment. MGM declined to comment and Live Nation did not respond to a request for comment.
Although there is a great deal of uncertainty about what insurance claims will emerge from the Las Vegas attack, both MGM and Live Nation have already disclosed that they have received multiple lawsuits in relation to the shooting.
In a recent 10Q filing, MGM stated that it believes it is "reasonably possible" it could incur liability in connection with a number of lawsuits it has already received, adding that it is unlikely it would incur losses in excess of its insurance coverage.
And only yesterday (20 November), it emerged that hundreds of victims of the 1 October shooting had filed five lawsuits in the Los Angeles Superior Court.
The biggest action was filed on behalf of 450 people either injured in or who witnessed the shooting, with the four other suits brought by families of those that had either been killed or severely injured, according to a Reuters report.
The victims have accused hotel operator MGM Resorts International and its subsidiary Mandalay Corp of failing to properly monitor the shooter's activities, train staff members and deploy adequate security measures, said the report.
It added that the claimants alleged Live Nation was negligent because it didn't provide adequate exits and properly train staff for an emergency.
The shooter, Stephen Paddock, fired into the festival crowd from a hotel suite on the 32nd floor of the Mandalay Bay Hotel, killing 58 people and wounding hundreds more.
This article first appeared in the latest issue of The Insurance Insider, which is available for subscribers to view at http://www.insuranceinsider.com/latest-issue