Munich Re Says it Does Not Owe Alabama Insurer $350,000 for Ultimate Net Loss

MOBILE, Ala. — Munich Reinsurance America Inc. is refuting an Alabama non-profit public insurer’s allegations that it breached a reinsurance contract by failing to fully reimburse the insurer for a $1.3 million settlement of underlying flood claims.

In a Jan. 2 answer filed in the U.S. District Court for the Middle District of Alabama, Munich Re admitted that it paid Alabama Municipal Insurance Corp. (AMIC) a total of $587,920.79, but denied that the Ultimate Net Loss was $937,920.79.

Munich Re issued AMIC Casualty Excess of Loss Reinsurance Agreement No. 1236-0018. According to AMIC, AMIC agreed that it would “retain and …