AIG Insurers Sue R&Q Re for $1.3 Million in Reinsurance Proceeds for Underlying Asbestos, HIV Settlements

NEW YORK — Three American International Group insurers have sued R&Q Reinsurance Co. for nearly $1.3 million in reinsurance proceeds for the settlement of claims brought against various insureds, including Kaiser Aluminum & Chemical Corp., Baxter Travenol Laboratories Inc. and Union Carbide Corp.

Granite State Insurance Co., Lexington Insurance Co. and the Insurance Company of the State of Pennsylvania filed the complaint on Dec. 30 in the New York County Supreme Court, seeking payment under several facultative reinsurance contracts.

According to the suit, R&Q’s predecessor, INA Reinsurance Co., issued the facultative contracts, which reinsured policies issued to Coltec …