In WRBC Corporate Member Limited v AXA XL Syndicate Limited [2026] EWHC 939 (Comm), the Commercial Court (Waksman J) has handed down judgment in favour of the Claimant reinsured (“WRBC”) in a high-value COVID-19 reinsurance claim.
WRBC brought claims against the defendant Reinsurers under two multi-class excess of loss reinsurance treaties (“the Treaties”). The claims related to losses suffered by WRBC on its Contingency book of business in relation to numerous large events (conferences, trade shows, exhibitions and sporting fixtures) which were cancelled or postponed as a result of the COVID-19 pandemic in seven jurisdictions (England, California, Colorado, Florida, Illinois, Nevada and New York) during 2020-2021.
There were two principal issues: an issue of construction of the Limits clause and an issue as to approach to the aggregation of losses.
As to the issue of construction, the aggregation clause in the Treaties provided (in familiar language) for the relevant limits and retentions to be applied “each and every loss, any one risk, or each and every loss or series of losses arising out of one event”. The Definitions section of the Treaties contained wording which defined the phrase “Any One Event” as meaning “any one Conference or Exhibition or convention” (“the AOE definition”). This gave rise to an issue as to whether (as the Reinsurers contended) the AOE definition applied to the phrase “one event” in the aggregation clause. Had it done so, WRBC’s recovery would have been greatly reduced, since the majority of individual losses fell below the level of the applicable retention.
The Judge held that the AOE definition did not apply and that WRBC’s construction, that “event” in the aggregation clause carried its orthodox meaning of a causative event that gives rise to losses, was “clearly to be preferred”. Waksman J reached this conclusion primarily as a matter of textual analysis, but also considered that the contextual matrix – including the history, form and content of earlier treaties – supported WRBC’s interpretation.
As to the approach to aggregation, WRBC argued that there was a single causative event in each jurisdiction which gave rise to all of its losses in that jurisdiction, the causative event being in each case either a combination of government measures or alternatively a single government measure restricting large gatherings. Waksman J rejected WRBC’s argument that the introduction of a combination of measures over a short period of time in each jurisdiction amounted to a single aggregating event, but recognised that (in light of Butcher J’s decisions in Stonegate Pub Co Ltd v MS Amlin Corporate Member Ltd [2023] Lloyd’s Rep IR 672 and Greggs Plc v Zurich Insurance Plc [2022] EWHC 2545 (Comm)) “it cannot be said that a number of measures can never collectively constitute a single occurrence or event”. However, he substantially accepted WRBC’s alternative case the causative event was a single government measure in each jurisdiction. The majority of WRBC’s losses in each jurisdiction fell to be aggregated by reference to that jurisdiction’s first restriction on large gatherings, applying the principles set out in Stonegate and Greggs to the effect that subsequent measures which continued existing restrictions, made trivial changes or relaxed restrictions were not to be regarded as fresh aggregating occurrences. The Judge considered that a small number of events which were cancelled after the introduction of a state of emergency (or similar) but prior to the first restriction on large gatherings could not be aggregated by reference to that first restriction. The Judge rejected Reinsurers’ case that the measure nearest in time to a cancellation or postponement should be treated as the cause of the loss.
The effect of the Judge’s conclusions on the two principal issues is that WRBC has recovered an indemnity of circa US$49.5 million, plus interest payable under a late payments clause in the Treaties in the sum of US$23.8 million.
Peter MacDonald Eggers KC, Sandra Healy and Philip Aspin acted for WRBC, instructed by Philip Hill, Harriet Slack, Rachel Williams and Daniel Thomson of Clifford Chance.
Andrew Pearson (with Mark Templeman KC of Essex Court Chambers) acted for Reinsurers, instructed by DWF.
A full copy of the judgment, dated 23 April 2026, is available here WRBC Corporate Member Ltd v AXA XL Syndicate Ltd & Ors
