Insurer sued in a £1.4m breach of contract dispute
AXA is being sued by Camperdown UK and London & Edinburgh Insurance Company in a $2.6m (£1.4m) breach of contract row.
Camperdown UK, the corporate vehicle for Lloyd's Syndicate 1211/2011, is demanding over $1m (£543,000) from AXA, while London & Edinburgh has filed a claim for nearly $1.6m (£870,000) against the insurer.
The two claimants said the sums were due under a contract of retrocession "as evidenced by a slip policy scratched by the defendant [AXA]" in June 1998.
In addition, the two claimants are claiming damages incurred as a result of the breach of contract.
The claimants are also demanding a declaration that the contract is "valid and subsisting" and that AXA remains liable to meet losses "arising thereunder".
Under the contract, which was entered into in 1998, AXA took a 50% line on London & Edinburgh's energy operating and construction treaty.
In December 1999, Camperdown UK took over the running of London & Edinburgh's energy account.
The claimants said AXA "assumed risks" relating to the account "by way of re-signing".
Camperdown UK and London & Edinburgh said that "wrongfully and in breach of contract" AXA had refused to pay the sums due under the terms of the retrocession contract.
An AXA spokeswoman declined to comment on the dispute.
The claimants added that if their claim against AXA failed, they would claim damages from their broker Newman Martin & Buchan.
Newman Martin & Buchan was unavailable for comment as Insurance Times went to press.