Introduction: Capital opportunities for captive insurers with legacy liabilities Many (re)insurance companies carry legacy liabilities on their balance sheets that no longer align with their current strategic goals. This practice is equally relevant to captive insurance companies. Such legacy liabilities, whether in run-off portfolios, discontinued lines of business, or aged … [Read more...] about Unlocking capital: Liability transfer solutions for captive insurance companies
Legal
Arbitration in the Courts
Chapter 2 of the Federal Arbitration Act (FAA) incorporates the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York Convention), and grants federal courts subject-matter jurisdiction over actions “falling under” the Convention. 9 U.S.C. § 203. In Molecular Dynamics, the Second Circuit held that this jurisdictional grant does not extend to … [Read more...] about Arbitration in the Courts
Special Termination Provisions in Reinsurance Contracts
Most reinsurance contracts contain a "special termination" clause. The clause typically allows either party to terminate the contract early if certain contingencies arise. Unsurprisingly, there are myriad versions of the special termination clause ranging from versions that only allow the ceding insurer to terminate to mutual clauses that allow either party to terminate. The … [Read more...] about Special Termination Provisions in Reinsurance Contracts
Using the Organizational Meeting to Build a Better Arbitration
Arbitration clauses in most insurance and reinsurance contracts are remarkable for how little they say about the process. The most basic form of arbitration clause states only that, if a dispute arises, the parties will arbitrate rather than litigate. Exactly what “arbitration” means usually remains undefined. A typical clause may add a few barebones terms regarding the … [Read more...] about Using the Organizational Meeting to Build a Better Arbitration
Enstar’s Cavello Bay sues Aspen for more than $400 million over alleged breach of reinsurance deal
Enstar subsidiary Cavello Bay Reinsurance Limited is seeking damages of more than $400 million against Aspen Insurance Holdings in a U.S. lawsuit over an alleged breach of a reinsurance agreement. Cavello Bay alleges in the lawsuit, which it filed in the Connecticut Superior Court in the judicial district of New Britain, that Aspen breached multiple provisions of an amended … [Read more...] about Enstar’s Cavello Bay sues Aspen for more than $400 million over alleged breach of reinsurance deal
Discovery of Reinsurance Information Rolls On
Policyholders and claimants seeking to access reinsurance contracts and other reinsurance information and communications to support their claims continues to take up plenty of judicial time. Courts are split on the issues, but the issues are all fact-dependent. In this post, I discuss two cases from this year where both courts granted motions seeking to disclose reinsurance … [Read more...] about Discovery of Reinsurance Information Rolls On
Municipal Liability Cases
Coincidentally, this year’s AIRROC summer meeting was held in New York City. Brian McElhenny and Jeffrey Migdalen, from the Gerber Ciano law firm, treated participants to a presentation highlighting the frequent litigation against New York State municipalities for various torts. These include motor vehicle accidents involving municipal vehicles or emergency vehicles, motor … [Read more...] about Municipal Liability Cases
Navigating Time Limit Demands: Best Practices for Insurers in the Age of Social Inflation
Presented by Daisy Khambatta and John LaBarbera, Partners, Kennedys In today's legal landscape, insurers face unprecedented challenges with time limit demands, driven by the rising tide of social inflation. As verdicts escalate, with some reaching astronomical figures like the $1.2 billion Texas case, insurers must develop robust strategies to respond to policy limit … [Read more...] about Navigating Time Limit Demands: Best Practices for Insurers in the Age of Social Inflation
Arbitration in the Courts
Supreme Court holds that FSIA § 1330 provides exclusive statutory test for personal jurisdiction over foreign states in arbitration award enforcement action: Courts need not conduct additional “minimum contacts” analysis when FSIA arbitration exception applies and service is proper. CC/Devas (Mauritius) Ltd. et al. v. Antrix Corp. Ltd. et al., 605 U.S. (2025). The … [Read more...] about Arbitration in the Courts
Fifth Circuit Definitively Rejects Manifest Disregard As a Ground for Vacatur of an Arbitration Award
The grounds for vacating an arbitration award under the Federal Arbitration Act (“FAA”) are limited. For decades, however, parties have raised manifest disregard of the law as a ground for vacatur. Many courts have limited or rejected manifest disregard as a basis to vacate an arbitration award. In a recent decision, the Fifth Circuit Court of Appeals in a non-reinsurance case … [Read more...] about Fifth Circuit Definitively Rejects Manifest Disregard As a Ground for Vacatur of an Arbitration Award
New York insurance law adds parametric insurance as covered insurance
Insurers who issue policies covering catastrophic weather-related events should take note of New York Assembly Bill 10344. As of January 12, 2025, insurers have the ability to incorporate parametric insurance into their insurance products as a regulated area of insurance law. New York’s legislation is the most recent example of how states are recognizing parametric insurance … [Read more...] about New York insurance law adds parametric insurance as covered insurance
Social Media and Insurance Coverage: A TikTok-ing Clock
This presentation explores the evolving intersection of social media and insurance coverage, emphasizing the rapidly growing risks and claims stemming from platforms like TikTok. Legal, regulatory, and market-based concerns are brought to light, especially as technologies such as AI integrate into social platforms. Peter Calleo and Troy Shuman of Enstar, Grace Seigel of Guy … [Read more...] about Social Media and Insurance Coverage: A TikTok-ing Clock
Bankruptcies and the Runoff Market – Impacts and Implications
Shelly DeRousse and Kathleen Ehrhart, both Partners at Smith Gambrell Russell, along with Geoffrey Goodman a Partner at Foley & Lardner led the discussion on bankruptcy and the runoff market at the 2025 Spring Membership Meeting. The session focused on the increasing number of mass-tort bankruptcies and the involvement of insurance and reinsurance companies, with an … [Read more...] about Bankruptcies and the Runoff Market – Impacts and Implications
Arbitration in the Courts
New York appellate court holds that prior arbitration award precluded claim by party’s affiliate under doctrine of res judicata: Non-party to arbitration was precluded from bringing breach of contract claim when the same issue was or could have been adjudicated by a related party in a prior arbitration. The doctrine of res judicata or claim preclusion prevents parties from … [Read more...] about Arbitration in the Courts
Additions to the DRP: The Neutral Panel Process
For years, arbitrators have discussed the benefits of neutral panels. Simply put, the concept is not new. A “few” years ago [enough said about the passage of time], Caleb Fowler, Bob Hall and Larry Monin outlined these benefits and offered themselves as a “pre-set” panel, as stated in their article, All-Neutral Arbitration Panels, XV Mealey's Reins. Rpt. No. 24 at 23 (April 28, … [Read more...] about Additions to the DRP: The Neutral Panel Process
A Brief Review of Reinsurance Trends in 2024
In 2024, the United States Supreme Court answered the question of whether a case should be stayed or dismissed if arbitration is compelled. Courts also continued to enforce arbitration rights and compel arbitration and addressed discovery of reinsurance information issues, questions of sealing of reinsurance information, jurisdiction, and a rare late notice … [Read more...] about A Brief Review of Reinsurance Trends in 2024
Talc-Related Matter Filings Predictably Increase, As New Bankruptcies Are Filed
Observers of filing trends in personal injury mesothelioma matters alleging exposure to talc contaminated with asbestos have noted that the bankruptcy filing of a predominant defendant in those matters did little to slow the pace of such filings. Instead, as the filing of new matters continued, the number of defendants named in such filings substantially increased. In an … [Read more...] about Talc-Related Matter Filings Predictably Increase, As New Bankruptcies Are Filed
I Shall (Not) Be Released: With Purdue Pharma Decision, US Supreme Court Remakes Chapter 11 Landscape
They say every man needs protection, they say that every man must fall.1 For over 40 years, “the bankruptcy community has recognized the resolution of mass tort claims as a widely accepted core function of bankruptcy courts,” and a “key feature in every mass tort bankruptcy” has been the non-debtor release.2 These releases are granted in favor of parties that have not … [Read more...] about I Shall (Not) Be Released: With Purdue Pharma Decision, US Supreme Court Remakes Chapter 11 Landscape
Supreme Court Resolves FAA Circuit Split, Limiting Appealability of Orders Compelling Arbitration
The Supreme Court recently resolved a Circuit split addressing how district courts should proceed when they have found that all claims in a dispute should be compelled to arbitration. Smith v. Spizzirri, No. 22-1218, --- S.Ct. ----, 2024 WL 2193872 (U.S. May 16, 2024). The Federal Arbitration Act (“FAA”) provides that, once a court has referred a matter to arbitration, “the … [Read more...] about Supreme Court Resolves FAA Circuit Split, Limiting Appealability of Orders Compelling Arbitration
Cedent Wins Late Notice Dispute
It’s been a while since there has been a court opinion on the defense of late notice in a reinsurance dispute. Recently, a Texas federal court had the pleasure of addressing the issue. In United States Fire Insurance Co. v. Unified Life Insurance Co., No. 3:22-cv-00868-BT (N.D. Tex., Mar. 29, 2024, the cedent sought a reinsurance recovery after a class-action settlement. The … [Read more...] about Cedent Wins Late Notice Dispute
