Milbank brings suit on behalf of reinsurer to recover premiums owed and to enforce contractual obligations
Milbank represents Greenlight Reinsurance, Ltd., a Cayman-based reinsurer, and its affiliate, in their suit against Appalachian Underwriters, Inc. and Insurance Services Group, Inc. to enforce and collect upon guarantees provided by both defendants.
The litigation arose from a series of reinsurance agreements between Greenlight Re and two insurance companies, for which AUI acts as the managing general agent, as well as a series of retrocession agreements between Greenlight Re and Appalachian Reinsurance (Bermuda) Ltd. To induce Greenlight Re into entering into these and other agreements, AUI and ISG guaranteed all relevant obligations under both sets of agreements. Subsequently, AUI failed to remit premiums it owed to Greenlight Re under the reinsurance agreement, and App Re failed to satisfy its collateral obligations under the retrocession agreements. We filed an action seeking declaratory and other relief to collect the amounts owed to Greenlight, and to require App Re to comply with its collateral obligations. The action is pending in the Southern District of New York.
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