Bermuda Reinsurer Not ‘Alter Ego’ of Insurer, Iowa Judge Rules

DES MOINES, Iowa — An Iowa federal magistrate judge has granted a Bermuda-based reinsurer judgment on the pleadings in a suit brought by an insured of its affiliate, Ability Insurance Co., ruling that the insured failed to show that the reinsurer is Ability Insurance's alter ego.

“While one can question the wisdom of regulators permitting Ability Insurance to purchase reinsurance from a member of the same corporate family, it does not render the contractual relationship a ‘sham’ or otherwise make Ability Reinsurance (Bermuda) susceptible to suit in Iowa,” Judge Jon S. Scoles of the U.S. District Court for the District …