Travelers Seeks Reinsurance Coverage for $449 Million Settlement

HARTFORD, Conn. - Travelers Casualty and Surety Co. has sued Factory Mutual Insurance Co. for $540,481 in reinsurance proceeds for the settlement of underlying asbestos claims brought against Armstrong Contracting and Supply Co. Travelers Casualty and Surety Co. v. Factory Mutual Insurance Co., No. 3:11-cv-00216 (D. Conn.).

The Feb 8 complaint, filed in the U.S. District Court for the District of Connecticut, asserts that Factory Mutual is liable as successor of Arkwright Mutual Insurance Co. and Philadelphia Manufacturers Mutual Insurance Co.

Traveler's predecessor, The Aetna Casualty and Surety Co., was reinsured under a blanket excess of loss program that incepted …