Foley & Lardner LLP

Reinsurance Arbitration Involving Improper Aggregation of Loss

Represented London-based reinsurers in a dispute involving a ceding company's efforts to aggregate professional liability losses as a single occurrence. Our clients denied coverage on the basis that the ceding company previously released all rights to recover against the reinsurers for losses relating to a specific individual's discrimination claims. Reinsurers also denied coverage on the basis that the losses in question did not arise from interrelated wrongful acts as defined under the reinsurance agreement and could not be aggregated together as a single occurrence as the ceding company had done.