Insurer Accuses Reinsurer of Unlawfully Withdrawing Funds from Trust Agreement

COLUMBIA, S.C. – Madison Insurance Co. has sued Greenlight Reinsurance Co., accusing it of wrongfully withdrawing funds from a trust agreement that had been established pursuant to a settlement of a reinsurance dispute between the parties.

In the Nov. 12 complaint filed in the U.S. District Court for the District of South Carolina, Madison asserts that the conditions precedent to the settlement agreement had not been fulfilled; therefore Greenlight is not entitled to the asserts. The insurer also names trustee Regions Bank — Corporate Trust as a defendant.

Greenlight Re issued two one-year quota share reinsurance agreements to State …