Chubb to Pay Target $138 Million for Data Breach Settlements

ACE American Insurance Co. and ACE Property & Casualty Insurance Co. are on the hook to cover Target Corp. for $138 million in losses from settlements with banks over a 2013 data breach, after a Minnesota federal judge reversed her previous decision.

Target sued ACE in 2019, alleging that the insurance companies—now doing business as Chubb Ltd.—breached their contracts when they refused to cover Target for amounts it paid to banks that had to issue replacement payment cards as a result of the breach.

In order to get coverage under insurance policies, Target had to prove that the losses ...