ANICO Not Entitled to Rescission of Retrocessional Agreements; Must Pay Munich Re’s Properly-Ceded Claims, N.J. Federal Judge Rules

TRENTON, N.J. — American National Insurance Co. is not entitled to rescission of retrocessional contracts issued to Munich Reinsurance America Inc., a New Jersey federal judge has ruled, finding Munich did not breach the duty of utmost good faith during the underwriting process or in its claims handling practices.

On Feb. 27, Judge Freda L. Wolfson of the U.S. District Court for the District of New Jersey ruled that Munich is entitled to contractual damages in the form of payment on all claims that were properly ceded to ANICO under the retrocession agreements that ANICO has not yet paid.

“To …