N.Y. Judge Awards Japanese Reinsurer $5 Million in Aviation Reinsurance Case

NEW YORK — A New York federal judge has ordered ProSight Specialty Management Co. to pay Japanese reinsurer Aioi Nissay Dowa Insurance Co. Ltd. $5,105,578.22 in breach of contract damages in an aviation reinsurance dispute.

On June 20, Judge J. Paul Oetken of the U.S. District Court for the Southern District of New York found ProSight’s commutations with two other reinsurers, which Prosight did not disclose to Aioi, lowered the amount of Aioi’s liability.

Between 1999 and 2001, ProSight took a 3 to 5 percent share of property and liability policies issued to airlines. ProSight purchased reinsurance coverage for …