OneBeacon Sues Transatlantic Re, Demanding Payment of $2.15 Million in Reinsurance Proceeds

BOSTON — OneBeacon America Insurance Co. has sued Transatlantic Reinsurance Co. in Massachusetts federal court, accusing the insurer of breaching six facultative certificates by refusing to pay $2,151,206 in reinsurance billings.

In the Nov. 3 complaint, OneBeacon contends that Transatlantic has stopped making the payments in order to interfere with OneBeacon’s relationship with National Indemnity Co. and Resolute Management Inc., and to enhance its bargaining power in unrelated disputes.

OneBeacon issued three umbrella liability policies to 84 Lumber Co. that were in effect between Nov. 30, 1981, to Jan. 1, 1985. Transatlantic allegedly reinsured these policies under three facultative reinsurance …