Insurance pools

Allocation of reinsurance recoveries within a pool

The October 2003 issue of Insurance Law Monthly contained discussion of the decision of Cooke J in North Atlantic Insurance Co Ltd v Nationwide General Insurance Co Ltd [2004] Lloyd’s Rep IR 47 . The case raised a large number of preliminary issues between insurance companies which had been in the Rutty Pool from 1962 to 1967, the pool going into run-off in 1967. The underwriting agent, Rutty, had arranged reinsurance for the pool, and the dispute concerned the allocation of the reinsurance recoveries within the pool following the insolvency of certain of its members. The Court of Appeal, in North Atlantic Insurance Co Ltd v Nationwide General Insurance Co Ltd [2004] EWCA Civ 423, [2004] Lloyd’s Rep IR (forthcoming) has now approved those parts of Cooke J’s reasoning which were contested.