Repwest Accuses QBE, AON of Breach of Contract in Connection with 1999 Commutation

PHOENIX - Repwest Insurance Co. has sued QBE Insurance Group Ltd. in Arizona federal court, asserting that its predecessor, Praetorian Insurance Co., breached two reinsurance agreements by entering into a 1999 commutation with a cedent without Repwest's consent. Repwest Insurance Co. v. Praetorian Insurance Co., et al., No. 2:12-369 (D. Ariz.).

In the Feb. 23 complaint, filed in the U.S. District Court for the District of Arizona, Repwest also accuses Aon Benfield Inc. of breach of contract, asserting that the reinsurance intermediary brokered the commutation without Repwest's permission.

From at least 1988, Repwest reinsured its excess workers' compensation policies with …