Four and a half years after the World Trade Center (WTC) terrorist bombing in New York, loss adjuster Edward Reilly has signed off on a $255-million settlement.

Mr. Reilly was involved solely in insurance claims that got the Port Authority building up and running again.

There are a number of other claims that were being handled separately, including claims relating to the adjoining Vista Hotel and huge liability issues which remain unresolved.

Mr. Reilly was on the Island last week for a loss adjusters conference, and addressed a Bermuda Insurance Institute luncheon.

His family firm, Edward R. Reilly & Co., Inc., is a small, New York adjusting firm that has been in business since 1934, which specialises in the property field and only represents insurers.

He said, "We are property specialists and in this type of case, we feel we have special expertise. The role of an adjuster is somewhat difficult because you have to be a mediator, an investigator and an author because reports are very important. They have to be passed on to underwriters and reinsurers. It is a tricky role.'' About the WTC loss, he said, "The ultimate demand for the cost of repairs, extra expenses, rental income losses were $395 million, supported by estimates and invoices.

"Some of the money expended by the Port Authorty related to enhancements to the property.'' He told those attending the luncheon at The Club last week, that this past September, some of the losses were actually settled.

He said, "The physical loss, loss of income was adjusted and settled and agreed at $265 million gross, less the $10-million primary layer limit.'' The lunchtime bombing had occurred February 26, 1993, claiming six lives and injuring 1,000 people. It eventually forced authorities to establish substantial security measures for a structure which could nearly house Bermuda's resident population.

Mr. Reilly also raised some question about the structure's building in the 1970's, noting that the Port Authority, as a quasi-government organisation were not necessarily subject to regular building codes.

He said, "They could get away with a lot. And they did.'' He explained in detail the devastating bombing and events that followed as sleuths solved the crime and brought the terrorists to justice.

He lamented: "I hope that the world never sees anything like this bombing again. But I'm not that confident. What's happening around the world makes you realise that you never know where they will strike next.

"Terrorists are fanatics and they are not going to stop.'' Some 55,000 people a day work at the 110-storey, twin towers of the WTC, which occupies a couple of acres.

As adjusters, his company was concerned to get the people back to work as quickly as possible.

The first layer of insurance of $10 million, excess of the $10-million retention, was paid within a month. The second layer was $290 million, excess of the $10 million retention and the $10 million of the first layer.

He said, "Our office represented one of the major carriers in that layer. The third fourth and fifth layers of insurance were for $100 million each and they were all in the London market.

"Notice was given to all layers, all carriers in every layer, because we never knew where this loss would go.'' Some 2,700 people were required to clean the towers within 20 days. How fast they could get the job done was important because the exposure to rental losses was estimated at $1 million a day.

That was what insurers would be forced to pay for every day the towers remained closed. The ultimate payment was $20 million.

There were other issues such as air conditioning and refrigeration. After the blast, the chillers were buried in the basement under 7,000 tons of debris.

It was impossible to get to them to ascertain if they would ever be functional again. Mr. Reilly's firm had to authorise the establishment of temporary chillers on a side street.

The temporary chillers were never used, but were put in place and ready for possible use the first day that office workers returned to the building.

BUSINESS BUC