Insurers hit by $4bn Supreme Court decision 2025

The legal battle revolved around whether insurance companies should have the right to pursue separate claims against the defendants, which include Hawaiian Electric, the state of Hawaii, Maui County, and Kamehameha Schools. The insurers, who have already paid out over $2.3 billion in property damage claims and expect to pay an additional $1 billion, argued that they should be able to seek reimbursement beyond the settlement amount. However, the court’s decision upholds a provision that bars them from doing so, limiting their recoupment to the existing $4 billion pool.