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Reinsurance and Insolvency
11/7/2007 4:33:18 PM EST
Reinsurers Never Settled With Korean Cedent, English Court Affirms
Posted by Marcy Kowalchuk
Editor, Mealey's Litigation Reports: Reinsurance and Insurance Insolvency

LONDON — In a case where a Korean insurer seeks enforcement of a $62.5 million judgment against a group of international reinsurers, an English appeals court on Oct. 30 affirmed rejection of the reinsurers’ defense that the dispute had been settled in 2005 (Korea National Insurance Corp. v. Allianz Global Corporate And Specialty AG, No. A3/2007/2033, English App.; See 9/7/07, Page 3).

Korean National Insurance Corp. (KNIC) is demanding more than $57 million from the reinsurers, which are led by Allianz Global Corporate and Specialty AG, a subsidiary of Allianz Group.  The reinsurance claims arise from a deadly 2005 helicopter crash that destroyed a warehouse containing emergency relief goods.

In July, the English Commercial Court, Queen's Bench Division, ruled that the contemporary correspondence does not support the existence of a settlement between KNIC and the reinsurers.  The ruling was affirmed by the English Court of Appeal.

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