Lexington, Trans Re, Settle $1.8 Million Reinsurance Action Involving Dynalectron Claims

BOSTON — Lexington Insurance Co. and Transamerica Reinsurance Co. have settled a dispute in which Lexington sought nearly $1.8 million in reinsurance proceeds for its settlement of underlying asbestos and environmental claims asserted against its insured, Dynalectron Corp.

According to a March 4 stipulation filed in the U.S. District Court for the District of Massachusetts, the parties agreed to the voluntary dismissal of Lexington’s claim and Transamerica’s $1.4 million counterclaim for setoff.

Lexington issued Dynalectron two excess policies in effect from July 1, 1981, to July 1, 1982. The policies were allegedly reinsured under two facultative reinsurance certificates issued by …