Overseas Partners Ltd will be hit by $114 million in claims after the attacks on Washington and New York earlier this month.

In a report to shareholders, OPL said the claims could be easily met without a threat to OPL's financial stability.

Mary Hennessy, president and chief executive officer of OPL wrote the company had held off making an early assessment to make sure that their figures were accurate.

An assessment done by OPL has identified 20 contracts with some potential for loss exposure.

The company said that after analysing the situation, the company's net income for the third quarter of 2001 will be reduced by $114 million "to reflect our incurred losses and a provision for uncollectible reinsurance in relation to these events".

OPL's exposure comes from its aviation and property writings and miscellaneous accounts. The company said that its current risk management controls are designed to limit their losses from major catastrophic events to less than ten percent.

A five-year licensing agreement has been reached between Overseas Partners Re (Bermuda) Ltd. and Overseas Partners US Reinsurance Company with Sherwood International, a leading supplier of information technology solutions to the global insurance and reinsurance markets, for an underwriting management system.

OPL will use Sherwood's SENATOR underwriting management solution at both companies in an accelerated time frame of fewer than six months.