Trenwick Seeks to Enjoin CX Re from Proceeding with Arbitration; Asserts Reinsurance Obligations Were Commuted

HARTFORD, Conn. — Trenwick America Reinsurance Corp. has asked a federal judge to temporarily restrain CX Reinsurance Company Ltd. from proceeding with a reinsurance arbitration, asserting any reinsurance obligation Trenwick may have had to CX Re was recently commuted.

In an Aug. 29 complaint filed in the U.S. District Court for the District of Connecticut, Trenwick also seeks a permanent injunction and vacatur of CX Re’s arbitration demand.

Trenwick’s predecessor, Chartwell Insurance Co., and Commercial Casualty Insurance Company of Georgia entered into a casualty excess of loss reinsurance agreement, effective April 1, 1993. Under the agreement, Chartwell reinsured a portion …