New York Court Dismisses Zurich Insurance Suit Against AXA Unit

Ruling says Zurich policy must be exhausted before AXA excess policies are triggered

Published on Feb. 12, 2026

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A federal court in New York has dismissed a lawsuit filed by a Zurich Insurance Group AG unit against an AXA SA unit over coverage for directors and officers of a former Lehman Brothers-backed Moroccan hotel operator. The court ruled that the Zurich policy must be exhausted before the AXA excess policies can be triggered, based on the language in the policies.

Why it matters

The ruling provides clarity on the order in which insurance policies must be exhausted when multiple excess policies are involved, which can be an important consideration in complex corporate liability cases.

The details

The case involves a Zurich Insurance Group AG unit's policy covering directors and officers of a former Lehman Brothers-backed Moroccan hotel operator that was hit with a criminal proceeding. The US District Court for the Southern District of New York ruled that the Zurich policy must be exhausted before the excess policies issued by an AXA SA unit can be triggered, based on the language in the policies.

  • The ruling was issued on February 12, 2026.

The players

Zurich Insurance Group AG

A global insurance company.

AXA SA

A multinational insurance firm.

XL Specialty Insurance Co.

An insurance company that was also involved in the case.

Lehman Brothers

A former investment bank that had backed the Moroccan hotel operator.

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The takeaway

This case highlights the importance of carefully reviewing policy language when dealing with complex corporate liability insurance coverage, as the order in which policies are exhausted can have significant implications.