Japanese Reinsurer Sues Prosight for $2.8 Million

NEW YORK - A Japanese reinsurer has sued Prosight Specialty Management Company Inc., seeking $2.8 million in allegedly excess sums paid to Prosight's predecessor under reinstatement premium protection contracts. Aioi Nissay Dowa Insurance Co. Ltd. v. Prosight Specialty Management Company Inc., No. 11-1330 (S.D. N.Y.).

The Feb. 25 complaint, filed by Aioi Nissay Dowa Insurance Company Ltd. in the U.S. District Court for the Southern District of New York, asserts that Prosight's predecessor, Mutual Marine Office Inc., concealed from Aioi the fact that it reached commutations with two other reinsurers that lowered the amount of MMO's liability for reinstatement premiums.