Seaton, Stonewall Owners Counterclaim Against National Indemnity

NEW YORK - National Indemnity Co. has been accused of scheming to control the runoff of Seaton Insurance Co. and Stonewall Insurance Co. through a reinsurance arrangement in order to maximize profits at the expense of the insurers and their owners. National Indemnity Co. v. Greenwich Street Investments II, No. 08-4067 (S.D. N.Y.).

In an answer and counterclaims filed Nov. 5 in the U.S. District Court for the Southern District of New York, Dukes Place Holdings, GCS Partners and Greenwich Street Investments allege that NICO entered into a secret "side agreement" with a runoff manager to fraudulently gain control of …