Transatlantic, Fair American, Urge N.Y. Court to Compel National Indemnity to Arbitrate Reinsurance Dispute

NEW YORK — Transatlantic Reinsurance Co. and Fair American Insurance and Reinsurance Co. have asked a New York federal court to compel National Indemnity Co. to participate in a reinsurance arbitration involving underlying asbestos liabilities.

According to the March 19 petition pending in the U.S. District Court for the Southern District of New York, NICO became the petitioners’ counter-party under the reinsurance contracts at issue through a loss portfolio transfer; therefore it is obligated to arbitrate disputes arising from those contracts.

At issue are 17 excess of loss reinsurance contracts and 24 pro rata reinsurance treaties allegedly entered into between …