Travelers Sues Factory Mutual for Asbestos Settlement Proceeds

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 May 20 amended complaint, filed in the U.S. District Court for the District of Connecticut, asserts that as successor in interest to Travelers' reinsurers, Factory Mutual is obligated to contribute toward the $449 million asbestos settlement.

Travelers was reinsured under a blanket excess of loss program that incepted in 1962 and …