STORY FROM: Reinsurance & Arbitration

AmTrust Prevails on Reinsurer’s Counterclaims in Breach of Contract Case

NEW YORK — A New York federal judge has awarded AmTrust Insurance Co.’s motion for summary judgment on a captive reinsurer’s counterclaims in a breach of contract dispute, ruling that the reinsurer was required to post $1.6 million in security as required by the reinsurance agreement.

On July 22, Judge Edgardo Ramos of the U.S. District Court for the Southern District of New York rejected Signify Insurance Ltd.’s argument that the reinsurance agreement had been rescinded and that AmTrust breached its obligations under a related program agreement.

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