TransRe Asserts $1.3 Million Counterclaim Against Lexington in Dynalectron Reinsurance Dispute

BOSTON — In its response to a suit seeking nearly $1.8 million in reinsurance for the settlement of asbestos and environmental claims brought against Dynalectron Corp., Transamerica Reinsurance Co. asserts there is no coverage under the reinsurance certificates because their terms and conditions were not met.

In its Feb. 19 answer filed in the U.S. District Court for the District of Massachusetts, TransRe also asserted a counterclaim of $1,398,239.55 against Lexington Insurance Co., representing sums it has already paid to Lexington under the reinsurance certificates.

Lexington issued Dynalectron two excess policies in effect from July 1, 1981 to July 1, …