Stonewall Drops $1.6 Million Reinsurance Action against XL Re

BOSTON — Stonewall Insurance Co. has voluntarily dismissed with prejudice its suit against XL Reinsurance America Inc. seeking $1.6 million in reinsurance proceeds for the underlying settlement of environmental claims asserted against Union Oil Company of California.

Stonewall filed its stipulation of dismissal on Nov. 25 in the U.S. District Court for the District of Massachusetts.

According to the Sept. 25 complaint, Stonewall issued various insurance policies to the Union Oil Company of California, including an excess policy (Policy No. 13272), which was effective Nov. 11, 1975, to Nov. 11, 1976.

XL’s predecessor, The North American Company For Property …