ProSight Liable to Aioi Nissay for $5.1 Million in Breach of Contract Damages, 2nd Cir. Affirms

NEW YORK — ProSight Specialty Management Company Inc. is liable to a Japanese reinsurer for $5.1 million in breach of contract damages in a dispute involving post-9/11 aviation losses, a federal appeals court has affirmed, finding the trial court properly interpreted the reinsurance contracts at issue.

On April 22, the 2nd Circuit U.S. Court of Appeals agreed with the lower court that ProSight’s undisclosed commutation with two other reinsurers lowered the amount of the reinsurer Aioi Nissay Dowa Insurance Co.’s liability.

Between 1999 and 2001, ProSight took a 3 to 5 percent share of property and liability policies issued to …