Judge Finds Aviva Relieved of Paying $4.4 Million Reinsurance Claim; OneBeacon’s Remaining Claims to Proceed

PHILADELPHIA — A Pennsylvania federal judge has found that Aviva Insurance Ltd. is not required to pay OneBeacon Insurance Co. $4.4 million in reinsurance proceeds because the claim is time-barred.

However, in the May 17 order, Judge Jan E. DuBois of the U.S. District Court for the Eastern District of Pennsylvania ruled that issues of fact exist as to whether additional reinsurance billings submitted by OneBeacon are barred by the statute of limitations and fall under the “follow the fortunes” doctrine.

In 1997, Aviva agreed to reinsure 100 percent of OneBeacon’s “global risk” liabilities under a reinsurance agreement known as …