Trenwick Says Reinsurance Commutation Extinguished CX Re’s Arbitration Rights

HARTFORD, Conn. — In its opposition to CX Reinsurance Company Ltd.’s motion to compel arbitration of a reinsurance dispute, Trenwick America Reinsurance Corp. asserts that a commutation between the reinsurance agreement’s signatories extinguished any arbitration right CX Re may have had.

In its Feb. 24 brief filed in the U.S. District Court for the District of Connecticut, Trenwick further argues that the commutation was neither a “termination” nor a “cancellation” under the reinsurance agreement, but rather an extinguishment of all rights and obligations under the agreement after its expiration.

Trenwick’s predecessor, Chartwell Insurance Co., entered into two casualty excess …