2nd Cir. Upholds Dismissal of Mariah Re’s $100 Million Catastrophe Bond Lawsuit

NEW YORK — A federal appeals court has upheld dismissal of Mariah Re Ltd.’s catastrophe bond lawsuit, agreeing with the trial court that American Family Mutual Insurance Co. did not improperly withdraw $100 million in reinsurance funds.

In a June 30 summary order, the 2nd Circuit U.S. Court of Appeals further found that the reporting agency and risk consultant defendants properly issued and relied upon a revised catastrophe bulletin in determining Mariah Re’s reinsurance obligation.

American Family offers insurance coverage for losses arising from severe weather events. Mariah Re Ltd. is a special purpose vehicle established for the purpose of …