Hannover Reuck Sued for $19 Million in Reinsurance Proceeds

NEW YORK — An insurer has sued Hannover Rueck Versicherung AG, seeking $19 million in reinsurance proceeds for underlying property insurance claims. Allied World Assurance Company (U.S.) Inc. v. Hannover Rueck Versicherung AG, No. 12-5146 (S.D. N.Y.).

In its July 2 complaint, filed in the U.S. District Court for the Southern District of New York, Allied World Assurance Company (U.S.) Inc. asserts that Hannover breached facultative contracts that reinsured two habitational commercial property portfolios.

According to the suit, in 2009, Allied World entered into a producer agreement with Southwest Risk LP, a wholesale insurance broker that produces or places commercial …