Reinsurers' Liability is Several, Not Joint, Federal Judge Rules

NEW YORK - A New York federal judge has ruled that a $2 million arbitration award issued in favor of Clearwater Insurance Co. should include spreadsheets setting forth the retrocessional liability of each defendant London Market Reinsurer. Clearwater Insurance Co. v. Allianz Cornhill International, et al., No. 08-8695 (S.D. N.Y.).

On Feb. 5, U.S. District Judge Alvin K. Hellerstein of the U.S. District Court for the Southern District of New York agreed with the defendant reinsurers that the liability of each LMR is "several, not joint."

Thirty-seven London Market reinsurers, including Allianz Cornhill International, American Home Assurance Co. and Continental …