WASA INTERNATIONAL INSURANCE CO AGF INSURANCE LTD v LEXINGTON INSURANCE CO

[2009] Lloyd's Rep Plus 77

HOUSE OF LORDS

Before Lord Phillips of Worth Matravers, Lord Walker of Gestingthorpe, Lord Brown of Eaton-under-Heywood, Lord Mance and Lord Collins of Mapesbury

Reinsurance – Facultative policy – Insurers covering liability against pollution losses for three-year period – Reinsurance taken out on same terms and conditions for 36 months – US courts ruling that insurers were liable for losses going back many years – Whether reinsurers liable to indemnify reinsured – Back-to-back cover – Meaning of deductible clause.