Reinsurance Intermediaries Liable For $41.1 Million, N.Y. Federal Judge Rules

Intermediaries

NEW YORK — Two reinsurance intermediaries breached a guarantee by failing to pay $41.1 million owed by Appalachian Underwriters Inc. (AUI) and its Bermudian reinsurer affiliate under three reinsurance agreements and a retrocession agreement, a New York federal judge has ruled.

On July 28, Judge J. Paul Oetken of the U.S. District Court for the Southern District of New York found the intermediaries were obligated under a 2009 guarantee to pay the debts.

At issue in the case are three one-year reinsurance agreements. Greenlight Reinsurance Ltd. was the reinsurer and Appalachian Underwriters Inc (AUI) was the managing general …