Reinsurer Accuses Investors, Holding Companies of Fraudulent Scheme

NEW YORK - National Indemnity Co. (NICO) has sued the owners of Seaton Insurance Co. and Stonewall Insurance Co. in New York federal court, accusing them of scheming to deprive it of its contractual right to oversee the claims handling activities of its cedents. National Indemnity Co. v. Greenwich Street Investments II, No. 08-4067, S.D. N.Y.).

The April 30 complaint, filed in the U.S. District Court for the Southern District of New York, says the defendants schemed to transfer NICO's claims administration rights and related fees to a prospective buyer, defendant Castlewood Holdings (US) Inc. (now Enstar (US) Inc.).

Between …