Practice/Industry Group Overview
The Department has a dedicated Reinsurance practice that specializes in reinsurance. We advise clients throughout the US, Europe (including the London market), Bermuda, Canada, Australia and elsewhere in complex, multi-jurisdictional disputes involving:
- Brokers and Managing General Underwriters
- D&O, financial institutions and credit risk
- Fidelity and Surety Business
- Life and Health
- Lloyd's and London Market
- Insolvency, Rehabilitation and Restructuring
- Marine and Offshore Energy
- Property and Casualty
- Run-off and Exit Solutions
- Underwriting Pools
- Workers Compensation Carve-out Business
Our Reinsurance practice is widely recognized for its experience, depth and success on behalf of its clients. We have represented leading companies from all markets in hundreds of reinsurance arbitrations and litigation. We also assist in resolving disputes through mediation, negotiation and commutation. In the past few years, some of our notable matters have included:
- representation at the vital center of the Unicover disputes, with significant arbitration successes, including one of the largest ever reinsurance arbitrations
- successful prosecution of an arbitration upholding a life reinsurer's right to raise rates on yearly renewable term contracts
- numerous arbitrations involving aggregation, allocation and occurrence determinations
- representation of clients in disputes arising from non-traditional insurance instruments, such as those used to support transactions by Enron and WorldCom
- acting in the context of major run-offs in a number of reinsurance disputes involving issues relating to recoverability of claims
- acting for many reinsurers in relation to coverage disputes relating to large asbestos liability covers
- acting for a significant underwriting pool in run-off in making a considerable number of reinsurance recoveries in arbitration
- acting for a leading US insurer exposed to heavy losses as a result of participating in a London Market pool underwriting PA LMX business
- devising and implementing a strategy for a global insurer to resolve a major reinsurance dispute with the market
- assisting a monoline financial warrantor in rescinding its reinsurance of guarantees associated with two books of subprime mortgage obligations.
We assist clients in negotiating, drafting, structuring and obtaining regulatory approval of reinsurance agreements, including unique and complex arrangements. We also assist companies in comprehensive reviews of reinsurance wordings and developing treaty guidelines. We have represented parties in connection with significant equity investments by reinsurers in their ceding companies, and in the formation, licensing, acquisition and sale of reinsurers.
Articles Authored by Lawyers at this office:
NAIC: Bermuda, Germany, Switzerland and UK Now Qualified for Reduced Collateral Requirements
Amber S. Mills,Nick Pearson, January 06, 2014
On December 18, 2013, the National Association of Insurance Commissioners (NAIC) approved four jurisdictions as "Conditional Qualified Jurisdictions," meeting its year-end goal for expedited review of certain jurisdictions. The four jurisdictions are Bermuda, Germany, Switzerland and the...
Solvency II†- ECIROA Raises Concerns Over Solvency II for Captives
Kimberley Cottrell,Chris Finney, December 26, 2013
The European Captive Insurance and Reinsurance Owners’ Association (ECIROA) has written to the Internal Market and Services Directorate General of the European Commission, and the European Insurance and Occupation Pensions Authority (EIOPA).
UK: Notification of ‘Circumstances’ Need Not Specify An Incident
Ajita Shah, December 20, 2013
The Court of Appeal in European Risk Insurance Company HF v Collette Ann McManus & Ors  EWHC 18 (Ch), has upheld a High Court judge’s decisions to a) refuse declaratory relief and b) award the claimants 60% of the costs of the hearing, stating that the first instance judge had given...
California Adds New Hazardous Financial Condition Regulations
Barry Leigh Weissman, December 16, 2013
Effective January 1, 2014, the California Department of Insurance has added six new regulations to Title 10 of the California Code of Regulations. These can be found at Title 10, Chapter 5, Article 22 Sections 2598 through 2598.6. The purpose of the new regulations is to provide the Insurance...
California Court of Appeal, Third District Holds In-House Attorney May Be Liable for Malpractice for Failing to Warn Employee About Conflict
Nora A. Valenza-Frost,Barry Leigh Weissman, December 06, 2013
The California Court of Appeal, Third District, in Yanez v. Plummer, 2013 WL 5915639, Cal. Ct. App. 3d Dist., No. C070726 (Nov. 5, 2013) recently held that a former employee deposed in connection with a co-worker’s personal injury suit may pursue malpractice claims against in-house counsel...
UK: English High Court Rules on the Application of a Follow the Settlements Clause
Mark Everiss,Sam Tacey, November 25, 2013
The case of Tokio Marine Europe Insurance Ltd v Novae Corporate Underwriting Ltd  EWHC 3362 (Comm) concerned losses suffered by a Thai subsidiary of Tesco plc arising out of severe floods in Thailand in 2011. The Tesco subsidiary claimed for losses of approximately £125m under various...
California Appellate Court Issues Bad Faith Duty to Settle Opinion
Gregory D. Pendleton, October 29, 2013
On October 7, the California Court of Appeal, Second Appellate District, held that a liability insurer, in the absence of any demand or settlement offer from a third party claimant, need not initiate settlement negotiations or offer its policy limits, even where liability is clear and there is a...
Claims Control Clauses: No Self-Control?
Mark Everiss,William Haig,Sam Tacey, August 13, 2013
The High Court rules on the effect of a claims control clause where cedants and some reinsurers unilaterally paid out their share of a claim.
Reinsurers Pressed for Compliance with Iran Sanctions
John C. Fusco,Nick Pearson, August 13, 2013
The U.S. government administers and enforces economic sanctions programs primarily against countries and groups of individuals such as terrorists, through either comprehensive or selective action, using the blocking of assets and trade restrictions to accomplish its foreign policy and national...
World Trade Center Events: One or Two?
David R. Kendall, August 13, 2013
In many areas of business insurance and reinsurance, whether a series of claims or losses is treated as one claim or several claims for the purposes of the insurance or reinsurance contract is an important question. It has repercussions on how many deductibles or excesses apply, the applicable...