Reinsurer Drops Lawsuit Accusing Insurer, Claims Handler of Mishandling Claims

BILLINGS, Mont. — A Bermuda-based reinsurer has dropped its lawsuit accusing an insurer and claims adjuster of mishandling and/or misallocating claims prior to the inception of portfolio transfer agreements under which the reinsurer agreed to cover the losses.

In a Feb. 4 filing in the U.S. District Court for the District of Montana, Pallas Reinsurance Company Ltd. voluntarily dismissed its claims without prejudice.

Preferred Contractors Insurance Co. and Pacific Re Inc. entered into a loss portfolio transfer agreement (PCIC LPT) in January 2020, under which Pacific Re agreed to assume responsibility for the adjustment, handling and payment of claims covered …