Lexington Sues TransRe for Nearly $1.8 Million in Reinsurance Proceeds

BOSTON — Lexington Insurance Co. has sued Transatlantic Reinsurance Co. for nearly $1.8 million in reinsurance for the settlement of asbestos and environmental claims brought against Dynalectron Corp.

According to the Dec. 30 complaint filed in the U.S. District Court for the District of Massachusetts, TransRe owes Lexington $1,768,003.67 under two facultative reinsurance contracts covering excess liability policies issued to Dynalectron in the early 1980s.

Lexington issued Dynalectron two excess policies in effect from July 1, 1981 to July 1, 1982. The policies were allegedly reinsured under two facultative reinsurance certificates issued by TransRe.

The reinsurance certificates provided that TransRe’s …