Reinsurance Arbitrations

Analysis Group assisted counsel in defending bad faith claims against a life insurance company in an arbitration initiated by a property and casualty insurance company. The plaintiff claimed that its failure was caused by the life insurance company's nonpayment of certain reinsurance claims.

Our expert submitted a report and provided testimony including rebuttal of the opposing expert, providing a thorough company and industry analysis to identify the factors other than reinsurance disputes that were responsible for the plaintiff's insolvency. The report included analyses to assess the impact of the nonpayment on plaintiff's GAAP and statutory financial statements and on key financial indicators such as the risk-based capital (RBC) ratio and the IRIS ratios. The report also determined the effect of the plaintiff's reinsurance disputes on its credit ratings. 

Under the direction of affiliate Laura Stamm, our work in various other arbitrations in this matter includes a detailed analysis of the factors that influence a P&C company's Best Rating, as well as construction of a methodology to assess the impact of the life insurance company's actions on the value of a plaintiff's holding company's stock price. The methodology included benchmarking the holding company's stock returns to those of comparable companies. We also analyzed the impact of specific events on the holding company's stock price.