Aon Unit Sues China Construction Bank Over Reinsurance Fraud

A Bermuda-based Aon Plc unit that handles reinsurance transactions sued China Construction Bank Corp. seeking at least $140 million for the state-owned bank’s role in a large-scale reinsurance fraud involving now-defunct Israeli insurance technology startup Vesttoo Ltd.

The lawsuit, filed by White Rock Insurance (SAC) Ltd. in New York state court, alleged the bank was liable for its employee conspiring with the startup to sell reinsurance policies that didn’t exist. White Rock provided a vehicle for carriers to transform assets into insurance or reinsurance.

The Beijing-based bank, a major commercial lender, was also sued in New York federal court earlier ...