Travelers Casualty and Surety Company v. Factory Mutual Insurance Co., No. 3:11-cv-00216 (D. Conn.)
In a Complaint filed on February 8, 2011, Travelers filed suit against its reinsurer, Factory Mutual Insurance Co., seeking approximately $539,000 for payments made by Travelers as part of a $449 million asbestos-related settlement on behalf of Travelers’ insured, Armstrong Contracting and Supply Company (“ACandS”). Travelers alleges that Factory Mutual promised to pay Travelers in accordance with reinsurance treaties to which Factory Mutual subscribed, known as Travelers Casualty’s Blanket Excess Loss program. The Reinsurance Treaties at issue cover the periods of April 1, 1976 through April 1, 1979. Travelers’ Complaint indicates an additional $275,000 due from Factory Mutual under the 1979-1980 treaty is not sought in the suit because it is subject to an arbitration provision in the treaty.
This suit by Travelers follows a similar suit filed in the same court by Travelers last month against three of its reinsurers seeking reimbursement for payments made by Travelers on behalf of ACandS as part of the $449 million asbestos settlement.
The impact of this decision is that Travelers continues to aggressively pursue repayment from its reinsurers for payments made to the ACandS Settlement Trust relating to asbestos injury claims made against ACandS. Additional suits may be in the offing as there is no sign that Travelers intends to ease up on seeking reimbursement from its reinsurers who subscribed to the Travelers Casualty’s Blanket Excess Loss program.
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Patrick Omilian and Rick Cohen