Granite State Ins. Co., et al. v. Transatlantic Reinsurance Co., 2013 N.Y. Misc. LEXIS 6142 (Sup. Ct., N.Y. County, 2013).
In a closely watched reinsurance action challenging AIG’s 2011 Loss Portfolio Transfer (LPT) with Berkshire Hathaway’s National Indemnity Company, Ford Marrin successfully opposed AIG’s motion to dismiss TransRe’s LPT-based defenses as well as AIG’s motion for partial summary judgment to recover multi-million dollar billings on a major underlying asbestos claim (Transamerica/IMO). In denying the bulk of AIG’s motions, the court noted that the LPT transaction between AIG and NICO does not qualify as “treaty reinsurance.” This ruling is critical because AIG has claimed that it is entitled to reduce the retention warranty in its facultative certificates through “treaty reinsurance,” but the court adopted Ford Marrin’s argument that the LPT is not “treaty reinsurance” because “treaty reinsurance” under the facultative certificates is prospective in nature whereas LPT reinsurance is retroactive.
Partners Joseph D’Ambrosio and Alfred D’Isernia represented TransRe in connection with these motions.
