Allianz Remains on the Hook for $11 Million Arbitration Award

Allianz will have to pay an $11 million arbitration award after a district court upheld an interpretation of an insurance policy and rejected the financial services company’s bid to vacate the award.

An arbitration panel acted within their broad discretion and the awardee Flextronics International Ltd. met the necessary policy requirements, Judge Paul A. Engelmayer said in an opinion and order Thursday. The Southern District of New York sided with Flex’s motion to enforce the award over Allianz Global Corporate & Specialty SE’s motion for vacatur.

Flex had a $130 million tower of insurance policies for directors-and-officers liability, which included ...