Contract analysis

1. Pursuant to Section 7503(a) of the New York Civil Practice Law and Rules ("CPLR") and Section 4 of the Federal Arbitration Act, 9 U.S.C. § 4, compelling Petitioner/Plaintiff Pinnacle Atlantic Reinsurance Ltd. ("Pinnacle Atlantic") to submit all claims and disputes arising under or relating to the Aggregate Excess-of-Loss Reinsurance Treaty No. PA-QCS-2019-EXL-0044, effective July 1, 2019, as extended through June

2. Pursuant to CPLR § 7503(a) and 9 U.S.C. § 3, staying all proceedings in this action, including but not limited to all discovery, pretrial motions, and other litigation activity, pending the completion of the arbitration described above;

3. Awarding Quorum its costs and disbursements incurred in connection with this motion, including reasonable attorneys' fees to the extent recoverable under applicable law; and

4. Granting such other and further relief as this Court deems just and proper. This motion is made on the grounds that the Treaty contains a broad, mandatory arbitration clause (Article 22) requiring the parties to resolve "any dispute arising out of or relating to the interpretation, performance, or breach of this Treaty" through binding arbitration under ARIAS-U.S. Rules before a three-member panel in New York, New

1. I am a Senior Associate (seventh year) in the Litigation Department of Calderwood & Harkness LLP ("C&H"), counsel for Respondents/Defendants Quorum Casualty & Surety Company ("QC&S") and Quorum Insurance Holdings Corp. ("QIH" and, together with QC&S, "Quorum") in this matter. I submit this affirmation in support of Quorum's motion to compel arbitration and stay all proceedings in this action.

2. I am personally familiar with the facts and circumstances set forth herein based upon my review of the relevant documents, including the reinsurance treaty at issue, the correspondence between the parties, and discussions with representatives of QC&S and QIH. Except as otherwise indicated, the facts stated herein are within my personal knowledge or are based on documents that are attached hereto as exhibits and in

3. Quorum respectfully submits that this motion should be granted because: (a) the parties entered into a valid and binding arbitration agreement contained in Article 22 of the Treaty; (b) each and every claim asserted by Pinnacle Atlantic in its pre-suit demand falls squarely within the broad scope of that arbitration clause; and (c) Pinnacle Atlantic has failed and refused to participate in the contractually mandat

4. Quorum Casualty & Surety Company. QC&S is a New York-domiciled stock property and casualty insurance company, licensed to write insurance in all fifty states, the District of Columbia, and the U.S. Virgin Islands. QC&S maintains its principal office at 200 Constitution Plaza, Suite 3200, Hartford, Connecticut 06103. QC&S is assigned National Association of Insurance Commissioners ("NAIC") number 24891. As of Decem

5. Quorum Insurance Holdings Corp. QIH is a Delaware corporation and the publicly traded parent holding company of QC&S. QIH's common stock is listed on the Nasdaq Stock Market under the ticker symbol "QIHC." QIH maintains its headquarters at 200 Constitution Plaza, Suite 3400, Hartford, Connecticut 06103. As of February 28, 2026, QIH had an approximate market capitalization of $6.7 billion. QIH does not directly wri

6. Pinnacle Atlantic Reinsurance Ltd. Pinnacle Atlantic is a Bermuda-domiciled Class 4 insurer registered with the Bermuda Monetary Authority under BMA Registration No. BMA-4R-2008-0331. Pinnacle Atlantic maintains its registered office at Clarendon House, 14 Church Street, Hamilton HM 11, Bermuda. Pinnacle Atlantic also maintains a U.S. office at 1285 Avenue of the Americas, 28th Floor, New York, New York 10019. Pin

7. QC&S, as cedent, and Pinnacle Atlantic, as reinsurer, entered into Aggregate Excess-of-Loss Reinsurance Treaty No. PA-QCS-2019-EXL-0044 (the "Treaty"), effective July 1, 2019. A true and correct copy of the Treaty, together with all endorsements and amendments thereto, is attached hereto as Exhibit A.

8. The Treaty provides aggregate excess-of-loss reinsurance coverage on QC&S's casualty lines portfolio, specifically covering commercial general liability, excess and umbrella liability, and professional liability policies issued or renewed by QC&S during the applicable treaty year.

9. The original term of the Treaty was five years, commencing on July 1, 2019 and expiring on June 30, 2024. The Treaty contained an automatic extension provision permitting annual extensions unless either party provided written notice of non-renewal at least nine months before the end of the then-current term. Pursuant to that provision, the Treaty was extended through June 30, 2025 and subsequently through June 30,

10. On October 1, 2025, Pinnacle Atlantic served a notice of non-renewal with respect to the current extension period, indicating that the Treaty would expire and not be renewed effective June 30, 2026. A true and correct copy of the non-renewal notice is attached hereto as Exhibit F.

11. The Treaty's material financial terms include: (a) a retention of $120 million per treaty year in aggregate net incurred losses; (b) a cession limit of $200 million per treaty year, covering losses from $120 million to $320 million; (c) a provisional premium rate of 42% of ceded earned premium, subject to a slide-scale adjustment mechanism with a minimum rate of 35% and a maximum rate of 52%; and (d) a deposit pr

12. Article 9 of the Treaty identifies Broadreach Intermediaries Inc. ("Broadreach") as the reinsurance intermediary broker through which the Treaty was placed and through which billings, notices, and premium payments were to flow in the ordinary course. Broadreach's role as intermediary is relevant to the underlying dispute, as it participated in the collection and transmission of certain loss and premium data at is

13. Article 16 of the Treaty provides that the Treaty shall be governed by and construed in accordance with the laws of the State of New York, without regard to its conflicts of law principles. The choice-of-law provision reinforces the parties' expectation that New York law would govern all aspects of their relationship under the Treaty, including the interpretation and enforcement of the arbitration clause.

IV. THE ARBITRATION CLAUSE — ARTICLE 22

14. Article 22 of the Treaty, captioned "Arbitration," sets forth the parties' agreement to resolve disputes through binding arbitration. The full text of Article 22 provides as follows: "22.1 Any dispute arising out of or relating to the interpretation, performance, or breach of this Treaty, including the formation, scope, validity, or applicability of this agreement to arbitrate, shall be resolved by binding arbitr

15. As the foregoing makes clear, Article 22 employs the broadest formulation of arbitral scope recognized under both New York and federal law — "any dispute arising out of or relating to the interpretation, performance, or breach of this Treaty." It is well established that such "arising out of or relating to" language creates a strong presumption in favor of arbitrability, and that doubts concerning the scope of ar

16. Notably, Article 22.1 also includes a delegation clause, vesting the arbitration panel with authority to "determine issues of arbitrability," including questions regarding "the formation, scope, validity, or applicability of this agreement to arbitrate." This delegation clause is an independent basis for referring this dispute to arbitration, as it commits threshold questions of arbitrability to the arbitrators t

17. The claims that Pinnacle Atlantic seeks to assert in this Court arise entirely from the Treaty and involve the interpretation, performance, and alleged breach of specific Treaty provisions. The total amount in dispute is $78,400,000 in reinsurance recoverables, plus Pinnacle Atlantic's claim for $12,600,000 in interest, for a total demand of $91,000,000.

18. As background, QC&S ceded losses to Pinnacle Atlantic under the Treaty across multiple treaty years. With respect to Treaty Year 2022 (July 1, 2022 through June 30, 2023), QC&S ceded aggregate net incurred losses of $69,700,000 in excess of the $120 million retention. With respect to Treaty Year 2023 (July 1, 2023 through June 30, 2024), QC&S ceded aggregate net incurred losses of $8,700,000 in excess of the $120

19. Pinnacle Atlantic paid the $78,400,000 in reinsurance recoverables across seven separate billing installments between October 15, 2022 and March 29, 2024, consistent with the billing and settlement procedures set forth in the Treaty and processed through Broadreach Intermediaries Inc.

20. On December 12, 2025, Pinnacle Atlantic sent a reservation-of-rights letter to QC&S, indicating that Pinnacle Atlantic was reviewing certain aspects of the ceded loss experience under the Treaty and reserving its rights to seek recovery of amounts previously paid. A true and correct copy of the reservation-of-rights letter is attached hereto as Exhibit C.

21. On February 14, 2026, counsel for Pinnacle Atlantic, Hargrove, Fitch & Calloway LLP ("HFC"), sent a pre-suit demand letter to QC&S demanding the return of $78,400,000 in reinsurance recoverables, plus $12,600,000 in interest, for a total demand of $91,000,000. A true and correct copy of the pre-suit demand letter is attached hereto as Exhibit B.

22. The HFC demand letter asserts four grounds for Pinnacle Atlantic's claim: (a) Late notice under Article 7 (the Meridian Docks mass tort cluster). Pinnacle Atlantic alleges that QC&S failed to provide timely notice of the Meridian Docks mass tort cluster — a series of related environmental and toxic tort claims arising from the Meridian Docks industrial complex in Newark, New Jersey — in violation of the notice re

23. Each of these four grounds is, on its face, a dispute "arising out of or relating to the interpretation, performance, or breach of" the Treaty. The late notice claim implicates Article 7. The IBNR misallocation claim implicates Article 5. The follow-the-fortunes claim implicates Article 11. The premium underreporting claim implicates Article 3. There is no claim asserted in the demand letter that exists independe

VI. PINNACLE ATLANTIC'S REFUSAL TO ARBITRATE

24. The HFC demand letter of February 14, 2026 contains a single sentence asserting that the Article 22 arbitration clause "is inapplicable to the specific claims raised herein." The demand letter provides no legal authority and no factual basis for this assertion. The letter does not identify any exception, carve-out, defense, or limitation that would render the broadly worded arbitration clause inapplicable to any

25. Upon receipt of the demand letter, I conferred with my partner, Margaret Liu, and with representatives of QC&S and QIH, including Mr. Engström and Ms. Kessler-Hoff. Following that consultation, on or about March 18, 2026, C&H sent two letters to HFC on behalf of QC&S: (a) a response letter addressing the substance of HFC's claims and QC&S's position that the claims are without merit; and (b) a formal demand to ar

26. As of the date of this affirmation, Pinnacle Atlantic has not responded to the formal demand to arbitrate. Pinnacle Atlantic has not appointed a party-appointed arbitrator. Pinnacle Atlantic has not engaged in any aspect of the arbitration process contemplated by Article 22 and the ARIAS-U.S. Rules.

27. To the contrary, through counsel, Pinnacle Atlantic has indicated its intention to file a plenary action in this Court rather than submit its claims to arbitration. HFC communicated this intention to C&H verbally during a telephone conference on or about April 2, 2026, and confirmed the same in a letter dated April 5, 2026.

28. Quorum has made every reasonable effort to resolve this dispute without motion practice, consistent with its obligations under Commercial Division Rule 17. Quorum proposed arbitration in accordance with the parties' contractual agreement. Pinnacle Atlantic rejected that proposal and has forced Quorum to seek judicial intervention to enforce the arbitration clause.

29. The following exhibits are annexed hereto and incorporated by reference: Exhibit A: Aggregate Excess-of-Loss Reinsurance Treaty No. PA-QCS-2019-EXL-0044, effective July 1, 2019 (with all endorsements, amendments, and automatic extension documentation) Exhibit B: Pre-suit demand letter from Hargrove, Fitch & Calloway LLP to Quorum Casualty & Surety Company, dated February 14, 2026 Exhibit C: Reservation-of-rights

30. For the reasons set forth herein, and as more fully developed in the accompanying Memorandum of Law, Quorum respectfully requests that this Court grant the motion to compel arbitration, stay all proceedings in this action pending the completion of arbitration, and award Quorum its costs and disbursements. Dated: New York, New York __, 2026 CALDERWOOD & HARKNESS LLP By: ________ Jeffrey Park, Esq. One Liberty Plaz

1. Compelling Pinnacle Atlantic Reinsurance Ltd. to submit all claims and disputes arising under or relating to Aggregate Excess-of-Loss Reinsurance Treaty No. PA-QCS-2019-EXL-0044 to binding arbitration pursuant to Article 22 of the Treaty and the Rules for the Resolution of U.S. Insurance and Reinsurance Disputes promulgated by ARIAS-U.S., before a three-member arbitration panel seated in New York, New York;

2. Staying all proceedings in this action, including any and all discovery, pretrial motions, and other litigation activity, pending the completion of such arbitration;

3. Awarding Respondents/Defendants Quorum Casualty & Surety Company and Quorum Insurance Holdings Corp. their costs and disbursements incurred in connection with this motion; and

4. Granting such other and further relief as this Court deems just and proper. IT IS FURTHER ORDERED that, sufficient cause appearing therefor, pending the hearing and determination of this application, all proceedings in this action are temporarily stayed. IT IS FURTHER ORDERED that service of this Order to Show Cause and supporting papers upon Petitioner/Plaintiff Pinnacle Atlantic Reinsurance Ltd., by service upon

1. The motion to compel arbitration is GRANTED.

2. Pinnacle Atlantic Reinsurance Ltd. is hereby DIRECTED to submit all claims and disputes arising under or relating to Aggregate Excess-of-Loss Reinsurance Treaty No. PA-QCS-2019-EXL-0044, effective July 1, 2019, as extended, to binding arbitration pursuant to Article 22 of the Treaty and the Rules for the Resolution of U.S. Insurance and Reinsurance Disputes promulgated by ARIAS-U.S., before a three-member arbitrat

3. Pinnacle Atlantic Reinsurance Ltd. shall appoint its party-appointed arbitrator within thirty (30) days of the date of this Order, in accordance with the procedures set forth in Article 22 of the Treaty and the applicable ARIAS-U.S. Rules. In the event that Pinnacle Atlantic fails to appoint its party-appointed arbitrator within such thirty (30) day period, the party-appointed arbitrator previously designated by Q

4. All proceedings in this action are hereby STAYED pending the completion of the arbitration, including but not limited to all discovery, pretrial motions, depositions, document demands, interrogatories, and any other litigation activity.

5. Either party may apply to this Court by order to show cause or by motion on notice for relief from the stay upon a showing that the arbitration has been concluded, that an arbitration award has been rendered, or that other good cause exists for modification or dissolution of the stay.

6. Quorum Casualty & Surety Company and Quorum Insurance Holdings Corp. are awarded their costs and disbursements incurred in connection with this motion, in the amount of $__, to be paid by Pinnacle Atlantic Reinsurance Ltd. within thirty (30) days of the date of this Order.

7. This constitutes the Decision and Order of the Court. Dated: __, 2026 New York, New York ________________________________________ J.S.C. Clerk to enter. Notify all parties. SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF NEW YORK: COMMERCIAL DIVISION • - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -x PINNACLE ATLANTIC REINSURANCE LTD., Petitioner/Plaintiff, — against — QUORUM CASUALTY & SURE

I. CERTIFICATION PURSUANT TO RULE 17 — GOOD FAITH EFFORT TO RESOLVE Jeffrey Park, Esq., an attorney duly admitted to practice in the courts of the State of New York and a Senior Associate at Calderwood & Harkness LLP, attorneys for Respondents/Defendants Quorum Casualty & Surety Company and Quorum Insurance Holdings Corp. (collectively, "Quorum"), hereby certifies the following pursuant to Rule 17 of the Rules of the

1. Counsel for Quorum has made a good-faith effort to resolve the issues raised by this motion without motion practice. Specifically, on or about March 18, 2026, Calderwood & Harkness LLP, on behalf of QC&S, sent a formal demand to arbitrate to Hargrove, Fitch & Calloway LLP ("HFC"), counsel for Petitioner/Plaintiff Pinnacle Atlantic Reinsurance Ltd. ("Pinnacle Atlantic"), invoking Article 22 of Aggregate Excess-of-L

2. Pinnacle Atlantic, through HFC, has refused to engage in the arbitration process. Pinnacle Atlantic has not responded to the demand to arbitrate. Pinnacle Atlantic has not appointed a party-appointed arbitrator. Pinnacle Atlantic has instead communicated its intention to file suit in this Court.

3. Counsel for Quorum participated in a telephone conference with HFC on or about April 2, 2026, during which counsel discussed the dispute and Quorum's position that arbitration is contractually required. HFC confirmed Pinnacle Atlantic's position that Article 22 is inapplicable and that Pinnacle Atlantic intends to litigate in court.

4. Based on the foregoing, counsel certifies that the dispute raised by this motion — namely, whether the parties' claims must be submitted to arbitration pursuant to Article 22 of the Treaty — cannot be resolved without Court intervention, as Pinnacle Atlantic has refused to participate in the contractually mandated arbitration process.

II. STATEMENT OF MATERIAL FACTS PURSUANT TO RULE 19-a Pursuant to Rule 19-a of the Rules of the Commercial Division of the Supreme Court, Respondents/Defendants Quorum Casualty & Surety Company and Quorum Insurance Holdings Corp. respectfully submit the following statement of undisputed material facts. Each material fact is followed by a citation to the supporting evidence in the record:

1. QC&S and Pinnacle Atlantic are parties to Aggregate Excess-of-Loss Reinsurance Treaty No. PA-QCS-2019-EXL-0044, effective July 1, 2019 (the "Treaty"). (Park Aff. ¶ 7; Exhibit A.)