N.Y. Federal Judge Confirms $524 Million Arbitration Award in Reinsurance Action

NEW YORK — A New York federal judge has confirmed an arbitration award requiring a reinsurer to deposit more than $524 million in a segregated account to be used as security for its liabilities under its reinsurance agreement with Universal Life Insurance Co. (ULICO).

On July 30, Judge Lewis Linman of the U.S. District Court for the Southern District of New York found the reinsurer was not denied due process and that the award does not contravene public policy.

PB Life and Annuity Company Ltd. (PBLA), a reinsurer domiciled in Bermuda, entered into a Coinsurance Reinsurance Agreement with ULICO, a …