Travelers Demands $8.5 Million from R&Q in New Suit

HARTFORD, Conn. - Travelers Casualty and Surety Co. is demanding $8.5 million in reinsurance proceeds from R&Q Reinsurance Co. for an underlying 2007 settlement of asbestos claims. Travelers Casualty and Surety Co. v. R&Q Reinsurance Co., No. 10-1946 (D. Conn.).

The Dec. 10 complaint, filed in the U.S. District Court for the District of Connecticut, says that under the terms of the reinsurance treaties at issue, R&Q may not question the settlements of its cedent.

According to the complaint, R&Q and several other reinsurers subscribed to a series of reinsurance treaties that comprised the Travelers Casualty's Blanket Excess of Loss …