ACE Ltd. announced the completion of the sale of three runoff reinsurance companies to a London investment firm, reducing its legacy liabilities, including asbestos, by around $900 million and reducing its reinsurance recoverables by about $400 million. The deal, when proposed, drew objections from some of ACE's cedents.
Summary judgment for reinsurer affirmed in collateral assignment case
A Florida Court of Appeal has affirmed a summary judgment in favor of a reinsurer arising out of the partial assignment of the underlying insurance policy as security for a loan, where the reinsurer paid the insured $8 million for a fire loss, ignoring the recorded assignment. Banco Ficohsa v. Aseguradora Hondurena, S.A., – So.2d -, 2006 WL 1999368 (Fla. 3rd DCA July 19, 2006) (slip opinion). Carlton Fields represented Banco Ficohsa in the appeal of this case.
UK – broker may assert lien for unpaid reinsurance premium
Under UK law, a reinsurance broker may assert a lien over claim proceeds for premiums for reinsurance coverage paid by the party's broker, but not reimbursed by the reinsured. Heath Lambert Ltd. v. Sociedad de Corretaje de Seguros, [2006] EWHC 1345 (June 9, 2006).
UK COURT APPROVES INSURANCE BUSINESS TRANSFER SCHEME FOR ZURICH GROUP COMPANIES
The High Court of Justice has approved an insurance business transfer scheme involving four Zurich group companies, finding that the report of an independent expert actuary supported capital retention needs. From a US standpoint, this opinion is interesting in its illustration of the role of an independent expert in such proceedings, where the retention of the expert and the report is approved by the FSA. In re Eagle Star Insurance Company Limited and Others, [2006] EWHC 1850 (Chancery Division June 29, 2006).
2006 Annual Update – Recent Developments in Excess Insurance, Surplus Lines Insurance, and Reinsurance Law
Roberta D. Anderson, Michael J. Rothman, Andrew A. Magwood, Kara H. Goodchild, Earl D. Zimmerman, Tort Trial & Ins. Prac. L. J., vol. 41, no. 2, at 393 (Winter 2006). This article is part of the annual survey of developments in tort and insurance law published each winter by the ABA's Tort Trial & Insurance Practice Section.