N.Y. Federal Judge Says NICO Not Required to Arbitrate AIG Reinsurance Claims

NEW YORK — National Indemnity Co. is not required to participate in an arbitration of reinsurance claims asserted by various American International insurers against Transatlantic Reinsurance Co., a New York federal judge has ruled.

In a July 22 order, Judge Edgardo Ramos of the U.S. District Court for the Southern District of New York denied without comment Transatlantic’s petition to compel NICO to arbitrate. The order was issued after a hearing held on July 15.

Transatlantic and its subsidiary, Fair American Insurance and Reinsurance Co. (FAIRCO), reinsured the AIG insurers for asbestos-related liabilities under 17 excess of loss reinsurance contracts …