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Assicurazioni Generali -v- CGU

22nd May 2003

[2003] LRIR 725; [2004] Lloyd’s Rep. IR 457

Stephen Hofmeyr QC led Johan Bignall against Sioban Healy in this matter where Gavin Kealey Q.C. acted as a Deputy High Court Judge: leading case on follow settlements clauses – affirmed by the Court of Appeal.

Reinsurance – Insurance of work for installation and maintenance of cables – Settlement of claim by reinsured – Reinsurance agreement requiring re-insurers to “follow the settlements” of reinsured – Scope of obligation to follow settlements – Position where insurance and reinsurance contained same terms and were drafted on back to back basis – Obligation on reinsured to prove that the basis on which the claim was settled fell within the reinsurance as a matter of law.