Reinsurers Say Travelers Misallocated Environmental Claims to Facultative Certificates

HARTFORD, Conn. — Six reinsurers are refuting claims that they breached two reinsurance certificates by failing to pay $1.65 million in billings for Travelers Casualty and Surety Co.’s underlying settlement of environmental claims.

In a June 26 answer filed in the U.S. District Court for the District of Connecticut, the reinsurers assert that Travelers misallocated the underlying claims to the reinsurance certificates and failed to settle the claims in good faith.

Travelers issued an umbrella policy to United Nuclear Corp., a company engaged in mining and other activities. A number of entities asserted environmental loss or damage claims against …