Final Arbitration Award Confirmed in Dispute Over Reinsurance Contract Experience Account

PHILADELPHIA — A Pennsylvania federal judge has confirmed a final arbitration award requiring Excalibur Reinsurance Co. to pay Platinum Underwriters Bermuda Ltd. 25 percent of the amount of the deficit in a 1999 reinsurance contract’s experience account.

On July 15, Judge Paul S. Diamond of the U.S. District Court for the Eastern District of Pennsylvania found the arbitrators rationally concluded that any deficit carried forward from the 1999 contract was never intended to be offset by any 2002 experience account surplus.

In 2003, Platinum and Excalibur entered into a reinsurance agreement under which Platinum reinsured certain Excalibur policies. The contract …