STORY FROM: Reinsurance & Arbitration

Penn National Says Arbitration Should Proceed in Reinsurance Coverage Dispute

HARRISBURG, Pa. — Pennsylvania National Mutual Casualty Insurance Co. is asking a federal judge to allow arbitration to proceed in a reinsurance dispute, arguing that it will be irreparably harmed if the reinsurer’s motion for a stay pending appeal is granted.

In a May 1 brief filed in the U.S. District Court for the Middle District of Pennsylvania, the insurer further argues that Everest Reinsurance Co. has not shown that it has a reasonable chance of success in appealing the court’s order compelling arbitration.

From 1991 to 1996, Penn National entered into several excess-of-loss reinsurance treaties with multiple reinsurers, including ...

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