Wausau Demands $600,000 in Reinsurance From OneBeacon in New Suit

MADISON, Wis. — Employers Insurance Company of Wausau has sued OneBeacon Insurance Co. (NYSE: OB) in Wisconsin federal court, demanding nearly $600,000 in reinsurance for the settlement of underlying asbestos claims.

The Feb. 5 complaint, filed in the U.S. District Court for the Western District of Wisconsin, says OneBeacon breached the facultative certificates’ “follow the settlements” provision.

In 1983 and 1984, OneBeacon allegedly issued Wausau two one-year facultative reinsurance certificates that covered two umbrella policies issued to The Marley Co. with the same effective dates as the facultative certificates.

Both facultative certificates provided that all claims involving the reinsurance, …