Article ID: 32cb41cdc32743de6c467813c4c7599eaaa310af8c5a00b65ac27b3c478b0c9a
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URL: https://www.businessinsurance.com/prudential-sues-insurers-over-300-million-rw-claim/
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Prudential sues insurers over $300 million R&W claim - Business Insurance Skip to content Register for free Search Search Log In Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Prudential sues insurers over $300 million R&W claim by Richard Sine Claims Disputes , Mergers and Acquisitions AIG , Berkshire Hathaway , Everest Group , Partner Re , QBE Jun 26, 2026 American International Group and five other insurers face a lawsuit alleging they dragged out a coverage dispute for more than five years, sending Prudential Financial nearly 200 individual information requests while refusing to say whether they will pay a claim tied to a multibillion-dollar acquisition. Prudential, the Newark, New Jersey-based insurance and financial services company, filed the complaint, Prudential Financial, Inc. v. AIG Specialty Insurance Company et al. , on June 18 in New York Supreme Court. The dispute stems from Prudential’s 2019 purchase of representations and warranties insurance covering its $2.35 billion acquisition of Assurance IQ, a Seattle-based health insurance distributor. The policies provided up to $300 million in coverage across a primary layer and six excess layers if Assurance’s representations and warranties to Prudential were inaccurate, the complaint says. Prudential alleges Assurance misrepresented its financial condition, claiming it was profitable when it was actually losing money by using outdated data in its financial statements. Prudential tendered its claims starting in July 2020. The complaint alleges the insurers responded with years of “whack-a-mole” tactics, including the repeated information requests and “deposition-style questioning of senior management and representatives, and phony barriers,” without ever issuing a coverage decision, despite policy language requiring a position within 60 days of a claim. The complaint brings claims for breach of contract, declaratory judgment , and breach of the implied covenant of good faith and fair dealing. Prudential seeks damages of no less than $135 million — the remaining policy limits — plus interest, attorneys’ fees, and a declaration that the insurers must indemnify Prudential to the full extent of the remaining policy limits. Prudential wound down Assurance IQ in 2024 after taking more than $2 billion in goodwill write-downs related to the acquisition. In 2025, the Prudential unit agreed to pay $100 million to settle allegations by the U.S. Federal Trade Commission that it misled consumers in the marketing of health insurance plans, according to an FTC statement. New York-based AIG issued the $30 million primary policy and a $15 million sixth-layer excess policy, according to the complaint. The complaint states AIG paid the full limit of its primary policy in connection with a third-party claim but alleges the insurer has refused to pay under its sixth-layer excess coverage for Prudential’s financial statement claim. The other defendants are Everest Indemnity Insurance of Liberty Corner, New Jersey; PartnerRe Ireland Insurance DAC, based in Dublin, Ireland; National Fire & Marine Insurance, a Berkshire Hathaway unit based in Omaha, Nebraska; QBE Specialty Insurance of Sun Prairie, Wisconsin; and Great American E&S Insurance of Cincinnati, Ohio. The insurers did not immediately respond to a request for comment. 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