Bank, Insurer Drop Reinsurance Action Against Lloyd’s Syndicates

NEW YORK — Wells Fargo Bank and a captive insurer have dropped their lawsuit against Lloyd’s of London seeking reinsurance coverage for their settlement of lawsuits arising from securities lending agreements executed by subsidiaries of Wachovia Corp.

According to a Feb. 21 notice filed in the U.S. District Court for the Southern District of New York, Wells Fargo and Superior Guaranty Insurance Co. voluntarily dismissed their complaint without prejudice.

Wachovia’s captive insurer, Superior Guaranty (formerly Beaumont Insurance) issued a one-year blended corporate directors and officers and bankers professional liability policy to Wachovia that was in effect on June 1, 2008.