Lexington, R&Q Reach Settlement-In-Principle in Asbestos Reinsurance Action

BOSTON — Lexington Insurance Co. and R&Q Reinsurance Co. have reached a settlement-in-principle in their dispute over reinsurance coverage for underlying asbestos injury claims filed against Borg Warner Corp., according to a recent court filing.

A notice of settlement in principle was filed on Sept. 29 before Judge Indira Talwani of the U.S. District Court for the District of Massachusetts.

Lexington sued R&Q in March, accusing it of breaching five facultative certificates by refusing to pay its purported share of the settlement.

From 1968 to 1982, Lexington issued nine excess umbrella liability policies to Borg Warner, which manufactured and distributed …