Reinsurance

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The Republic of Iraq moved to compel arbitration of its lawsuit against BNP Paribas pursuant to an arbitration clause in a contract between the United Nations and BNP.  The suit sought to recover damages stemming from BNP’s involvement in the alleged corruption of the United Nations Oil-for-Food program.  BNP cross-moved to enjoin arbitration. …
Read More New York Federal Court Finds That The Republic of Iraq Cannot Arbitrate Claims Related to United Nations “Oil-for-Food” Scandal Based Upon Third-Party Beneficiary Status

Indiana recently enacted HB 1486 (enacted as PL 11, 2011, the “Act”), which, effective April 6, 2011, grants the Indiana Insurance Commissioner (the “Commissioner”) discretion to reduce the amount of collateral required for domestic insurers to receive full financial statement credit for reinsurance ceded to assuming insurers that are not licensed or accredited by, or for an alien company entered through, Indiana or a state with similar standards regarding credit for reinsurance. …
Read More Indiana Joins New York, New Jersey and Florida in Relaxing Credit for Reinsurance Collateral Requirements

Plaintiffs Trenwick America Reinsurance Corporation and Unum Life Insurance Company of America purchased retrocessional coverage from defendant IRC Re Limited.  The retrocession agreements did not contain follow the fortunes or follow the settlements clauses, and after a dispute arose under the agreements, the parties litigated (among other things) whether the follow the fortunes or follow the settlements doctrine applied. …
Read More Relying Upon Testimony of Expert Witnesses, Massachusetts Federal Court Finds That Follow the Fortunes Governs Reinsurance Relationship, Even Where Agreements are Silent

Earlier this month, Alterra Capital Holdings Ltd. and Stone Point Capital LLC announced that they formed a sidecar named New Point IV, both agreeing to commit up to $100 million. According to the press release, New Point IV was created due to “the recent series of global catastrophic events . . reducing the capital supporting the international property catastrophe reinsurance market . . . .” …
Read More Formation of Alterra/Stone Point Side Car May Mark Start of a Trend

Neles-Jamesbury Inc. v. Pohjola Ins. Co. Ltd. involved a breach of contract action between a Massachusetts-based insurer, Neles-Jamesbury, Inc. (“NJI”) and a Finnish reinsurer, Pohjola Ins. Co. Ltd. (“Pohjola”). Pohjola provided worldwide reinsurance coverage for Metso Oy, a Finnish corporation, and its subsidiaries. NJI was acquired by Metso Oy, and Metso Oy requested that Pohjola provide gap coverage for NJI during the acquisition period. …
Read More Massachusetts District Court Grants Reinsurer’s Motion to Dismiss for Lack of Personal Jurisdiction

This updates our May 13, 2010 blog posting.  Last month, the New Jersey legislature passed the “Reinsurance and Surplus Lines Stimulus and Enhancement Act” (A2670, the “Act”).  The Act amends state law to permit surplus lines insurers domiciled in New Jersey to write surplus lines insurance in the state.  This would make New Jersey the second state in the U.S. after Illinois to allow its domestic surplus lines companies to write insurance in the home state’s surplus lines market. …
Read More New Jersey Passes Legislation to Ease Restrictions on Surplus Lines and Credit for Reinsurance

Nikolaus von Bomhard, chief executive of Munich Re AG the world’s largest reinsurer, views insurance protection against the risk of nuclear incidents as unaffordable for insurers and power plant operators, according to a recent interview he gave in the German national Sunday newspaper Welt am Sonntag. …
Read More Nuclear Risk Too Expensive To Underwrite?

AXA Seguros, S.A. De C.V. v Allianz Insurance plc (Allianz) and others [2011] EWHC 268 (Comm) concerned a claim for privilege in reports produced by an engineering firm in relation to damage to the Don Nogales highway in Mexico. AXA had insured a company which had responsibility for the Don Nogales highway. Allianz and others (the Reinsurers) reinsured AXA. The reinsurance policy only covered damage to highways constructed to “internationally acceptable standards“. …
Read More UK: Engineering Firm Reports Not Privileged