Insurer Accuses Enstar of Directing Subsidiary to Contest Reinsurance Claims

LOS ANGELES — California Capital Insurance Co. (CIC) and its underwriting affiliates have sued Enstar Holdings (US) LLC, accusing it of instructing its newly-acquired reinsurer subsidiary to begin denying CIC’s reinsurance claims, thereby breaching the reinsurance treaties and interfering with CIC’s contractual relations.

The complaint, removed to the U.S. District Court for the Central District of California on Aug. 26, says Enstar has directed Maiden Reinsurance North America Inc. to contest and litigate the reinsurance claims in order to decrease its ultimate liability.

Also named as defendants are Enstar (US) Inc. d/b/a Enstar Administrators, Cranmore (US) Inc., and Enstar …