Travelers Sues PMA Insurance for $190,722 in Reinsurance

HARTFORD, Conn. - Travelers Casualty and Surety Co. is seeking $190,722 in reinsurance proceeds from Pennsylvania Manufacturers Insurance Co. for a multi-million dollar settlement of asbestos claims brought against Armstrong Contracting and Supply Co. Travelers Casualty and Surety Co. v. Pennsylvania Manufacturers Association Insurance Co., No. 11-213 (D. Conn.).

The Feb. 8 complaint filed in the U.S. District Court for the District of Connecticut says PMA may not "second-guess" Travelers' settlements with policyholders.

PMA allegedly subscribed to a series of reinsurance treaties that comprised Travelers' blanket excess of loss program. The program incepted in 1962 and was renewed annually. In …