OneBeacon Must Pay Toward Cedent’s $35 Million Asbestos Settlement, N.Y. Federal Judge Rules

NEW YORK – A New York federal judge has ordered OneBeacon Insurance Co. to pay toward Fireman’s Fund Insurance Co.’s $35 million settlement of asbestos claims filed against a mining company, ruling that FFIC did not breach the underlying policy’s ‘exhaustion’ provision.

On Oct. 19, Judge Paul G. Gardephe of the U.S. District Court for the Southern District of New York concluded that pursuant to the reinsurance contract’s “follow-the-settlements” provision, OneBeacon is bound to pay FFIC under the facultative reinsurance certificate.

FFIC issued three one-year excess umbrella liability policies to ASARCO Inc. The first policy (Policy 1) was effective from …