Travelers Demands Reinsurance Coverage for $449 Million Settlement

HARTFORD, Conn. - Travelers Casualty and Surety Co. has sued American Independence Co., seeking reinsurance proceeds for a $449 million settlement of asbestos claims brought against Armstrong Contracting and Supply Co. Travelers Casualty and Surety Co. v. Independence American Insurance Co., No. 12-115 (D. Conn.).

The Jan. 25 complaint, filed in the U.S. District Court for the District of Connecticut, says American Independence owes Travelers $346,143.57 under a series of reinsurance treaties that covered that ACandS policies.

According to the suit, First International was among several reinsurers that subscribed to a series of reinsurance treaties that comprised Travelers Casualty's Blanket …