Insurance

Capital Z sues Examination Management Services for $225,000

April 30, 2004

A Bermuda firm is suing a Dallas-based medical and data information services provider that it came close to buying last year.Capital Z Financial Services Fund II LP is seeking damages of at least $225,000 against Examination Management Services Inc., of Dallas, Texas; Mark S. Davis, and Robert P. Brook, both of Texas, in a lawsuit filed at the U. S. District Court for the Southern District of New York on April 5, 2004. The causes of action are breach of contract, quantum meruit, and tortious interference with contract.

2003 Compensation Review for Bermuda Insurance Executives

April 30, 2004

Massive profits from exercising stock options made ACE Ltd. officers Donald Kramer and Brian Duperreault the best compensated officers among Bermuda-based, publicly-traded insurers in 2003.Kramer and Duperreault topped InsideBermuda's Seventh Annual Compensation Review for Insurance Executives with packages of $27.5 million and $26.8 million, respectively, for the 12-month period.

Dominic Frederico ran ACE unit like a ‘boy’s club’, alleges former employee

April 30, 2004

ACE Group senior officer Dominic Frederico likes to operate his business unit as a "boy's club" where "women aren't allowed in", according to a former employee.The claim was made in a lawsuit alleging sexual discrimination that was filed recently by Lisa A. Hicks, a former Vice President of Communications of ACE American Insurance Company.

Bermuda News Briefs: April 30, 2004

April 30, 2004

Bermuda News Briefs: Half of the 37,000 registered trademarks in Bermuda have been lost from the computerized Trademark Registry following a crash, The Royal Gazette newspaper reported on March 27, 2004; Centre Reinsurance International Co. has obtained a judgment for $4.4 million against Margent Group Inc. and Thomas G. Brown; Oil Insurance Limited announced on April 6 that two more energy companies had joined, continuing the recent trend of additions to its membership; AXIS U.S. Insurance has expanded its professional lines capabilities with the formation of a new professional liability unit and the establishment of a dedicated unit for financial institutions business; XL Capital Ltd. announced on April 19 that it would enter into the market for primary casualty risk management programs for major U.S. corporations; and details of several lawsuits involving Bermuda-domiciled firms that have been filed in the USA.

$1.5 m judgment against American Investors Insurance

April 30, 2004

A default judgment for $1.5 million has been entered in the United States against Bermuda-registered American Investors Insurance Ltd. The judgment was entered in favor of plaintiff Employers Reinsurance Corporation, of Missouri, at the U. S. District Court for the Western District of Missouri on March 5, 2004.

Trenton Line Slip et al

April 19, 2004

Advisory Warning against Trenton Line Slip and Trenton Line Slip Administrators, LLC by the British Virgin Islands Financial Services Commission.

Overseas Partners Ltd. paid $535 m in 2003

March 31, 2004

Overseas Partners Ltd., which went run off after the termination of its lucrative shipper's risk program with affiliate United Parcel Service, paid liquidating distributions totaling $535 million or $4.50 per share during the 12 months ended December 31, 2003, the

Bermuda P&I club sued for $350,000 in one action, seizes vessel in another

March 31, 2004

A civil complaint has been filed in the United States against a Bermuda based P&I club regarding a $350,000 claim for a marine incident in which a vessel allegedly collided with a dock.International Marine Terminals Partnership, of Myrtle Grove, Louisiana,

Insider Talking: March 31, 2004

March 31, 2004

A company formed by British investment fraudsters Lincoln Fraser and Jared Brook to disrupt the administration liquidation of their failed Imperial Consolidated Group, including perpetrating an asset recovery fraud against Imperial's investors, is about to go the way of most,

APL (Bermuda) sued in New York

March 31, 2004

A New York liquor distributor has applied to seize a freight vessel owned by a Bermuda firm after an allegedly botched delivery of wine from France.M V APL Alexandrite set sail from Le Havre on February 19, 2003 with a

Bermuda Fire & Marine liquidators disclose terms of 1999 litigation settlement

March 31, 2004

The liquidators of Bermuda Fire & Marine Insurance Company have disclosed that they received $50 million as settlement of one of the most high profile lawsuits in the island's history.However, $24 million of that went to cover fees and costs

John Hancock sued again over unpaid reinsurance

March 31, 2004

In the latest fall out from the fraudulent practices of Bermuda based broker AlphaStar Stirling Cooke, a U. S. insurer is being sued for unpaid claims that may eventually total $60 million.John Hancock Financial Services Inc., of Boston, Massachusetts, is

U.S. to seek extradition of two British nationals in alleged offshore reinsurance scam

March 31, 2004

Several offshore reinsurers have been implicated in an alleged $45 million health insurance scam in the United States. The reinsurers, formed in Aruba, Belgium, the Cook Islands, Cyprus, and Ireland, have allegedly failed to pay claims to small businesses and

USA v. Michael Arthur Reeve et al: Criminal Indictment

March 25, 2004

Criminal Indictment in USA vs. Michael Arthur Reeve, John Anthony Claro, Jack H.M. Ferguson, Milton Doke Wilkinson, Gary I. Hoskie, James Arthur Glidewell, and Euan David McNicoll at the U. S. District Court for the Southern District of Texas.

London and Scottish Assurance Corporation Ltd.: Section 304 Petition

March 18, 2004

Section 304 Petition for Assistance in Insolvency Proceedings in the United Kingdom by David Rose, as the Foreign Representative of London and Scottish Assurance Corporation Limited, Edinburgh Assurance Company Limited, The Indemnity Marine Assurance Company Limited, The British & European Reinsurance Company Limited, Commercial Union Assurance Company Limited, General Accident Fire and Life Assurance Corporation Limited, General Accident Reinsurance Company Limited, The New Zealand Reinsurance Company (UK) Limited, The Road Transport & General Insurance Company Limited, The Ulster Marine Insurance Company Limited, Scottish Insurance Corporation Limited, The Yorkshire Insurance Company Limited, and The Ocean Marine Insurance Company Limited, at the U. S. Bankruptcy Court for the Southern District of New York.

Class action lawsuit against XL Capital

February 29, 2004

XL Capital and three of its officers and directors have been named as defendants in a class action lawsuit alleging securities fraud. The complaint was filed at the U. S. District Court for the District of Connecticut on November 20, 2003 on behalf of investors who bought shares between November 1, 2001 and October 16, 2003.

Weather coverage litigation settled in New York

February 29, 2004

A lawsuit involving Bank of America, Platinum Indemnity Ltd., Diamond State Insurance Company and PartnerRe has been concluded. How it was settled, however, is not public knowledge since several documents concerning the case were filed under seal at the U. S. District Court for the Southern District of New York.

First Virginia Re lawsuits temporarily stayed

February 29, 2004

A slew of lawsuits concerning the collapse of Bermuda-based captive First Virginia Reinsurance Ltd. have been stayed pending a ruling on which United States court should have jurisdiction. All proceedings have come to a temporary halt while a 'Judicial Panel on Multidistrict Litigation' considers a motion by three of the defendants, General Re, GeneralCologne Re and Berkshire Hathaway, to have the cases consolidated into one action at the U. S. District Court for the Western District of Tennessee.

Standard & Poor’s downgrades Centre Solutions Group

February 29, 2004

The shareholders' equity of Centre Solutions (Bermuda) Ltd. fell by 32 per cent in the first nine months of 2003, according to figures released by ratings agency Standard & Poor's. The decline from $914.9 million on December 31, 2002 to $620 million on September 30, 2003 came despite $225 million in capital contributions from its parent, Zurich Financial Services Group, stated S&P.

IRS investigates clients of Asia Pacific Mutual Insurance

February 29, 2004

The IRS is conducting an investigation into clients of Vanuatu-registered Asia Pacific Mutual Insurance Company Ltd. Details of the investigation are contained in two petitions filed in October, 2003 by the insurer at the U. S. District Court for the District of Hawaii to quash IRS summonses that were served on the Bank of Hawaii, in Honolulu.

New CFO for Annuity & Life

February 29, 2004

Beleaguered reinsurer Annuity & Life Re (Holdings), Ltd. announced on February 25 that it has promoted John W. Lockwood to Chief Financial Officer. Lockwood will maintain his responsibilities as Vice President of U.S. Operations for Annuity and Life Re (Holdings), Ltd.'s U.S. subsidiary, Annuity and Life Re America, Inc., and its operating subsidiary, Annuity and Life Reassurance America, Inc.

Puritan International Ltd.: Private Placement Memorandum

February 13, 2004

Puritan International Ltd. - Private Placement Memorandum - February 13, 2004

Puritan International Ltd.: Investment Brochure

February 13, 2004

Puritan International Ltd. - Investment Brochure - February 13, 2004

Capital Z seeks to block Superior National/Health Net settlement

January 31, 2004

The Capital Z Group has been accused of attempting to "derail" a $132 million litigation settlement as part of a scheme to "extort" $45 million from the settling parties. The allegations were made in recent filings at the U. S. Bankruptcy Court for the Central District of California, where SNTL Corp., formerly Superior National Insurance Group Inc., filed for Chapter 11 bankruptcy protection on April 26, 2000.

Sentinel Insurance has no assets, ex-president has bankruptcy plan rejected

January 31, 2004

Bermuda-registered Sentinel Insurance Company Ltd., which collapsed in 2001, has "substantial debts" and "virtually no assets whatsoever", according to its provisional liquidator, Jeremy Cox. Cox, who is Bermuda's Registrar of Companies, commented on the indebtedness of Sentinel in a court filing at the U. S. Bankruptcy Court for the Northern District of Georgia on December 1, 2003.

Ratings agency warns about becoming dependent on offshore reinsurers

January 31, 2004

A financial ratings agency has warned direct writers of U.S. individual life insurance policies about relying too much on offshore reinsurers. U. S. insurers are "becoming increasingly reliant on offshore reinsurance to transfer off of their balance sheets the growing reserve strains associated with statutory reserve requirements" stated Moody's Investors Service in a press release on January 15, 2004 to announce a new report on the subject.

MRM sues John Hancock for allegedly causing its collapse

January 31, 2004

Mutual Risk Management has filed a lawsuit against one of the non-paying reinsurers that it blames for causing the cash-flow problems that led to the group's collapse. MRM is seeking compensatory and punitive damages against John Hancock Life Insurance Company, formerly John Hancock Mutual Life Insurance Company, of Boston, Massachusetts.

Insurance firms seek independent Trustee for AlphaStar Insurance Group

January 31, 2004

Three United States-based firms have asked a court to appoint an independent Bankruptcy Trustee for AlphaStar Insurance Group Ltd. to prevent further fraud. The current management of AlphaStar and 11 of its subsidiaries, which all filed for Chapter 11 bankruptcy protection in New York on December 15, 2003, cannot be trusted, it was alleged.

IRS investigates alleged tax evasion involving offshore reinsurers

January 31, 2004

The IRS is investigating alleged tax evasion involving Miami-based American Bankers Insurance Group and reinsurance companies in the Turks & Caicos Islands. ABIG is part of the Fortis Group, an international conglomerate of insurance, banking and investment concerns, including offshore banks and trust companies under the 'Fortis Bank' and 'MeesPierson' brands.

Cayman insurer accuses bank of withholding funds

January 31, 2004

A Cayman Islands-registered exempted insurer has accused a United States bank of withholding $467,582 of its funds.Star Insurance Company (Cayman) Ltd. claims to have been trying to gain access to the funds in six trust accounts at Wachovia Bank since March 4, 2003.

Ludgate Insurance Company Ltd.: Section 304 Petition

January 30, 2004

Section 304 Petition for Assistance in Insolvency Proceedings in the United Kingdom by Kenneth Randall and Alan Quilter, as the Foreign Representatives of Ludgate Insurance Company Limited, at the U. S. Bankruptcy Court for the Southern District of New York.

‘Len Quick and I did not approve massive bonuses,’ writes AlphaStar CEO Stephen Crane

December 31, 2003

Letter to the Editor of OffshoreAlert from Stephen Crane, CEO of AlphaStar Insurance Group, formerly known as Stirling Cooke.

Overseas Partners close to settling class action lawsuits

December 31, 2003

Bermuda-based Overseas Partners Ltd. says it has reached a "tentative settlement" in two class action lawsuits filed on behalf of customers of its affiliate, United Parcel Service. The lawsuits were filed in the United States in 1999 and 2000 by parties who alleged racketeering, claiming they had been sold sham insurance in a UPS shipper's risk program that was reinsured by OPL.

Japanese insurer awarded $1 b against Fortress Re

December 31, 2003

An arbitration panel sitting in New York has awarded more than $1 billion against failed aviation reinsurance pool manager Fortress Re Inc., of North Carolina. In a decision issued on December 16, 2003, the panel found that Fortress Re and its principals, Maurice Sabbah and Kenneth Kornfeld perpetrated a massive fraud against Sompo Japan Insurance Inc.

AlphaStar files for Chapter 11 bankruptcy protection

December 21, 2003

Bermuda-domiciled AlphaStar Insurance Group Ltd. and 11 of its subsidiaries have applied for Chapter 11 bankruptcy protection in New York. The group is seeking breathing room while it seeks buyers for its assets, including policy-issuing subsidiary Realm National Insurance Company, for which AlphaStar "is no longer able to provide capital".

Bermuda P&I Club sued for $250,000

November 30, 2003

UK P&I Club (Bermuda) Ltd. is one of three parties being sued for $250,000 after a vessel it insured allegedly caused damage at the Port of New Orleans.The lawsuit was filed by the Board of Commissioners of the Port of

UK Mutual Steamship Assurance Association sued for allegedly damaged goods

November 30, 2003

The United Kingdom Mutual Steamship Assurance Association (Bermuda) Ltd. is being sued in the United States concerning cargo allegedly damaged by the operators of one of its insured vessels.The lawsuit was filed Trujillo & Sons Inc., of Florida, at the

Realm National deal subject to more litigation

November 30, 2003

The acrimonious, on again, off again proposed purchase of AlphaStar Insurance subsidiary Realm National Insurance Co. by Atlanta Insurance Marketing Inc, of Georgia, has become even uglier.Already subject to legal action between the intended seller and buyer, a new lawsuit

Insider Talking: November 30, 2003

November 30, 2003

Deloitte & Touche has offered $32 million to settle a class action lawsuit filed on behalf of shareholders of the British Virgin Islands registered Manhattan Investment Fund who bought shares between October, 1995 and January, 2000. D&T's Bermuda office audited

Virginia Insurance Commissioner accused of abusing his authority

November 30, 2003

The Virginia Commissioner of Insurance has been accused of wrongfully seizing $57 million that allegedly belongs to insolvent Bermuda based captive First Virginia Reinsurance.Alfred W. Gross, as Deputy Receiver of Reciprocal of America and The Reciprocal Group Inc., allegedly illegally

IRS co-operation led to $22 m loss for Swiss bank client, alleges lawsuit

November 30, 2003

A United States resident claims he lost $22 million as a result of the mis handled restructuring of his offshore account made necessary by Swiss banks agreeing to co operate with the IRS.At the center of the allegations are Bank

$37 m award rewards fraud by General Electric captive, claims reinsurer

November 30, 2003

A United States reinsurer on the wrong end of a recent $37 million arbitration award claims that General Electric's Bermuda-based captive, EMLICO Ltd., is being rewarded for committing fraud.OneBeacon America Insurance Company, formerly known as Commercial Union Insurance Company, of Massachusetts, is seeking to overturn the June 19, 2003 arbitration ruling.

Annuity & Life Re shareholders bring class action against KPMG

November 30, 2003

KPMG's operations in Bermuda, the United States and the United Kingdom are defendants in a class action lawsuit filed by shareholders of financially troubled Annuity & Life Re (Holdings) Ltd., which it audited. The complaint was filed by Communications Workers of America, and Midstream Investments Ltd. at the United States District Court for the District of Connecticut on October 23, 2003.

First Virginia Re insolvent by $79m-$111 m, landmark ruling on company liquidations

October 31, 2003

Bermuda-based captive First Virginia Reinsurance Ltd. has a deficit of between $79 million and $111 million, according to a ruling at Bermuda Supreme Court.Details of the reinsurer's insolvency were contained in a written judgment on October 23, 2003 by Puisne Judge Ian Kawaley.

CNA sues former executives who left to join rival firm

October 31, 2003

Continental Casualty Company, d.b.a. CNA, has accused four former executives of stealing trade secrets and breaching confidentiality agreements by helping to start a rival insurer in Bermuda.The civil lawsuit was filed by Chicago-based CNA at the United States District Court for the Northern District of Illinois on September 30, 2003.

Hampton Re goes into liquidation

October 31, 2003

Bermuda-based life reinsurer Hampton Re, which was sponsored by JP Morgan, went into liquidation this month after less than three years in business."The reason for winding down the business is two-fold," Mary Sedarat, a spokesperson for J.P. Morgan Private Bank, told The Royal Gazette newspaper, which revealed the firm's closure on October 16.

Court of Appeals upholds $9.8 m Terra Nova award

October 31, 2003

Reinsurer PXRE Group Ltd. announced on October 9 that the United States Court of Appeals for the Third Circuit had affirmed a $9.8 million judgment awarded in June 2002 after a jury trial of its dispute against fellow Bermuda firm Terra Nova Insurance Company.

Andersen chaos causes delay in $10 million payments

October 31, 2003

The Arthur Andersen group is in such structural chaos that a Bermuda-based mutual insurer for accounting firms has more than $10 million to pay out but does not know where to send it.Professional Asset Indemnity Ltd., of Bermuda, and its wholly-owned subsidiary, PAIL Vermont Insurance Company, of Vermont, is so confused that it has taken the matter to court.

Anthony Defries v. Swiss Partners Investment Network et al: Complaint

October 29, 2003

Complaint alleging securities fraud in Anthony Defries, a citien of the United Kingdom residing in Virginia, as the principal beneficiary and beneficial owner of the assets of Laurasca Foundation, of Liechtenstein v. Swiss Partners Investment Network, of Switzerland; Swiss Partners Insurance Company SPC Ltd., described as a "Swiss corporation" with "principal offices in Cayman Islands"; Liechtensteinische Landesbank Ltd., of Liechtenstein; Karp & Grenauer PA, of Florida; Bank Julius Baer & Company Ltd., of Switzerland; Dexia PrivatBank Switzerland, of Switzerland; Rainer H. Moser, of Switzerland; Martin P. Egli, of Monaco; Simon Newson, of Switzerland; Benno K. Raeber, of Switzerland; Anthony B. Stelling, described a citizen of the United Kingdom residing in the Cayman Islands; Elfried Hasler, of Switzerland; Norman Oehri, of Switzerland; Joel J. Karp, of Florida; Raymond J. Baer, of Switzerland; Armin Weber, of Switzerland; Marcel Wieduwilt, of Switzerland; Sigrid Baur, of Switzerland, and Alfons Widmer, of Switzerland, at the U. S. District Court for the Eastern District of Virginia.

First Virginia Reinsurance Ltd.: Section 304 Petition

October 28, 2003

Section 304 Petition for Assistance in Insolvency Proceedings in Bermuda by Malcolm Butterfield and Michael Morrison, as the Foreign Representatives of First Virginia Reinsurance Ltd., at the U. S. Bankruptcy Court for the Eastern District of Virginia.