Lexington, R&Q Agree to Dismissal of Asbestos-Related Reinsurance Action

BOSTON — Lexington Insurance Co. and R&Q Reinsurance Co. have agreed to dismissal without prejudice of their dispute over reinsurance coverage for underlying asbestos injury claims filed against Borg Warner Corp.

The Nov. 16 notice, filed before Judge Indira Talwani of the U.S. District Court for the District of Massachusetts, followed an announcement that the parties had reached a settlement in principle.

Lexington sued R&Q in March, accusing it of breaching five facultative certificates by refusing to pay its purported share of the settlement.

From 1968 to 1982, Lexington issued nine excess umbrella liability policies to Borg Warner, which manufactured …