Ceding Insurers Sue Reinsurer for Transferring Reinsurance Obligations Without Their Consent

SAN FRANCISCO — A California federal lawsuit accuses Bothina International Insurance Company Ltd. of unlawfully executing a retroactive loss portfolio transfer of certain reinsurance obligations without approval from the ceding insurers.

In a July 27 complaint filed in the U.S. District Court for the Northern District of California, the ceding insurers say their consent was required before the novation could be effected.

“The ceding insurers were not parties to the proceedings before the German insurance regulator, did not have advanced notice of those proceedings and did not consent to any such transfer, and have not received copies of the agreements …