WASA INTERNATIONAL INSURANCE CO AND ANOTHER v LEXINGTON INSURANCE CO

[2008] Lloyd's Rep IR 510

COURT OF APPEAL

Before Lord Justice Pill, Lord Justice Sedley and Lord Justice Longmore

Reinsurance - Reinsured providing property cover for three-year period to assured - Proportional reinsurance written as original and follow the settlements, but covering property damage occurring during currency of the reinsurance - US court holding reinsured liable for property damage dating back 50 years before inception of cover - Reinsured settling - Whether reinsurers bound by settlement - Whether deductible clause in reinsurance applied per occurrence.