Setoff Claimed by Reinsurer had Requisite Mutality, N.H. High Court Rules

CONCORD, N.H. - A New Hampshire trial court erred in ruling that a setoff claimed by Century Indemnity Co. lacked the mutality needed under state law, the New Hampshire Supreme Court ruled July 25. In the Matter of The Liquidation of The Home Insurance Co., No. 2007-794 (N.H. Sup.).

The Supreme Court panel determined that the language of a 1995 assignment agreement evinces the parties' intent "to give present ownership of" reinsurance recoverables to Century.

In the mid-1990s, Century's corporate parent, CIGNA Insurance Group, underwent restructuring in Pennsylvania. Pursuant to the restructuring, Century agreed to reinsure general liability policies issued …