Transatlantic Disclaims Liability for Asbestos Liabilities, Citing ‘Impermissible’ Loss Portfolio Transfer

NEW YORK — In its answer to counterclaims asserted by AIG insurer subsidiaries in a dispute over reinsurance allegedly owed for underlying asbestos liabilities, Transatlantic Reinsurance Co. says the insurers impermissibly transferred those liabilities, thereby breaching the facultative certificates at issue.

In an Oct. 5 reply filed in the New York County Supreme Court, TRC asserts that because the insurers entered into a loss portfolio transfer with National Indemnity Co. (NICO) without TRC’s consent, they are no longer entitled to payment under the certificates.

TRC issued AIG subsidiaries National Union Fire Insurance Co., Granite State Insurance Co. and Lexington …