Stirling Cooke
November
2002
Only one of six Bermuda insurers reports Q3 profit
Only one of the six Bermuda based, publicly listed insurers which reported quarterly results in November made a profit. The fact that it was its arch rival, Scottish Annuity & Life Holdings, was salt in the massive wounds currently being
September
2002
Stirling Cooke changes name to AlphaStar Insurance Group
Crisis firm Stirling Cooke Brown Holdings has changed its name to AlphaStar Insurance Group Ltd., effective September 30, in its latest attempt to shed itself of its poor image.The firm stated that its “Board of Directors had decided that a
July
2002
Stirling Cooke’s broking MD resigns
The Managing Director of Stirling Cooke Brown’s London broking operations, now renamed Gresham Intermediaries, has resigned after less than 12 months with the group.
June
2002
Milo and Ferguson sue Hannover Re over Clarendon Insurance deal
Hannover Re is being sued for $56 million by two former senior executives of Clarendon Insurance Group who claim to have been cheated out of executive compensation.
Ralph Milo and Robert D. Ferguson have accused Hannover Re of reneging on their amended employment contracts which formed part of the sale of Clarendon to Hannover Re in 1999.
May
2002
Q1 Results Round-Up for Bermuda insurers
Five Bermuda based, publicly listed insurers reported their results for the quarter ended March 31, 2002 during May.Stirling Cooke Brown Holdings and ESG Re reported losses, while Max Re Capital, PartnerRe and Scottish Annuity & Life reported profits.Stirling Cooke Brown
May
2002
‘Goldman Sucks’: Stirling Cooke’s sponsor performs just as badly in London
Goldman Sachs, which took Stirling Cooke Brown public in 1997 without disclosing its principals’ history of fraud, has finished bottom of an IPO performance league table for the London market.
April
2002
Woman brings sexual harassment action against Stirling Cooke
A 38-year-old woman has filed a lawsuit against Stirling Cooke Group Services Inc. and North American Risk Inc., alleging sexual harassment, assault and violation of her civil rights.
Cyndie Woodbury, who worked at Stirling Cooke’s office in Bradenton, Florida, filed her action at the United States District Court for the Middle District of Florida on March 28, 2002.
April
2002
Stirling Cooke billed $1.7 m for 44 days of legal work
InsideBermuda has obtained a copy of an invoice sent to Stirling Cooke Brown Holdings which indicates the crippling legal bills the firm is paying to defend itself against a civil lawsuit in the United Kingdom.
March
2002
Stirling Cooke reports heavy losses, announces possible de-listing
Stirling Cooke Brown Holdings has reported a net loss of $11.27 million for the quarter ended December 31, 2001, bringing its total losses over the last two fiscal years to $58.34 million.
The company has also publicly disclosed what InsideBermuda first revealed on January 31, 2002 – that it faces having its shares de-listed from the NASDAQ National Market System.
March
2002
MRM insurance subsidiaries taken over by Pennsylvania regulator
Mutual Risk Management subsidiaries Legion Insurance Co. and Villanova Insurance Co. have gone into “voluntary rehabilitation” following court action by Pennsylvania Insurance Commissioner Diane Koken.
The rehabilitation orders, which were granted by the Commonwealth Court of Pennsylvania on March 28, 2002, become effective April 1, 2002.
February
2002
MRM faces July trial on civil RICO allegations
The collapse of its share price to penny stock status, downgrade of its credit ratings, breach of debt covenants and uncollectible reinsurance are not all Mutual Risk Management has to worry about.
A jury trial is due to start at Gwinnett Superior Court, Georgia on July 29, 2002 in which MRM is a defendant in a civil lawsuit filed under the Racketeering Influenced and Corrupt Organizations Act.
January
2002
InsideBermuda’s Five-Year Anniversary
This month’s edition of InsideBermuda marks our fifth anniversary of continuous publication, having launched the newsletter on February 24, 1997.
In the 60 editions since that date, InsideBermuda has ‘broken’ many significant stories, perhaps most notably about Bermuda Fire & Marine Insurance and Stirling Cooke Brown Holdings.
January
2002
Stirling Cooke and First Ecom.com face NASDAQ de-listing
Bermuda-based insurance broker Stirling Cooke Brown Holdings and offshore-owned electronic payments processor First Ecom.com, which is funded largely with offshore money, face having their shares de-listed from in the first half of 2002 unless their stock prices improve.
They have until February 11 to get their stocks above the $1 minimum bid that is required for continued listing on the NASDAQ National Market.
December
2001
Stirling Cooke name change halted due to clash
Goldman Sachs-controlled Stirling Cooke’s proposed name change to Atlantic Star Insurance Group Ltd. has been halted at the eleventh hour after it was discovered the name clashed with an existing firm.
Curious as to why the company had not yet effected a name change that was approved at Stirling Cooke’s AGM as long ago as May 23, 2001, InsideBermuda asked Stirling Cooke for an explanation.
November
2001
Stirling Cooke discloses that CIRCL is insolvent
Goldman Sachs controlled Stirling Cooke Brown’s problems worsened this month as the firm announced that its reinsurance subsidiary, Comp Indemnity Reinsurance Company Ltd., had become insolvent.News of CIRCL’s insolvency was contained in the firm’s 10Q filing with the SEC on
October
2001
George Jones steps down as Stirling Cooke’s CFO
Stirling Cooke Brown Holdings Ltd. has announced that George W. Jones “at his own request and for personal reasons, has relinquished his duties as Chief Financial Officer for an indefinite period of time”.”Mr. Jones will take on new responsibilities relating to resolution of reinsurance disputes and other special projects,” stated an announcement on October 22.
August
2001
Stockholm Re creditors to receive 30 cents on the dollar
Creditors of Stockholm Re (Bermuda) Ltd., which went into liquidation in January, 1995, are likely to receive just 30 cents on the dollar when all is said and done.
A spokesman for liquidator Deloitte & Touche in London said that a dividend of 20 cents on the dollar was paid to creditors at the end of May, 2001, with a second dividend due to follow later this year.
August
2001
Bermuda Insurance Market Results Round-Up: Financial problems continue for ESG Re and Stirling Cooke
The financial woes of John Head’s ESG Re and Stirling Cooke Brown Holdings continued in the second quarter ended June 30, 2001, with both companies reporting further losses.
Mutual Risk Management, meanwhile, reported a much-needed profit and Annuity & Life Re and Scottish Annuity & Life both made money, as did market giants XL Capital and PartnerRe.
July
2001
Willis Group enters Odyssey Re-Stirling Cooke lawsuit
Bermuda-registered broker/risk manager Willis Group Holdings has applied to intervene in a civil lawsuit filed by Odyssey Re against Stirling Cooke Brown Holdings and others at the High Court in London.
Willis, which is effectively seeking to become a defendant, is also believed to have filed a separate lawsuit against Stirling Cooke, apparently in order to cover all liability scenarios.
June
2001
Stirling Cooke shareholders approve name change
Stirling Cooke Brown’s shareholders voted at its AGM on May 23 to approve changing the firm’s name to Atlantic Star Insurance Company Ltd. – a move which was disclosed two months ago in InsideBermuda.
The make-over is part of a continuing attempt by the company to rid itself of the stench of its founders Nicholas Brown and Mark Cooke.
May
2001
Stirling Cooke/Clarendon/Legion lawsuit stayed due to Employee Solutions bankruptcy
A civil lawsuit by Clarendon National Insurance Co. and subsidiaries of Mutual Risk Management and Stirling Cooke Brown Holdings. has been stayed after the defendant filed for bankruptcy. Clarendon National, Legion Insurance Company and Realm National Insurance Company have been
May
2001
Indictment left Clarendon MGA ‘too depressed’ to work
A former Managing General Agent for the Clarendon Insurance Group and business associate of Stirling Cooke who claims that a criminal indictment left him too depressed to work is suing an insurer for stopping his disability payments.
David R. Sanz, 39, claims that he is still incapacitated even though he was acquitted of racketeering, grant theft and fraud by a jury in Florida more than two years ago.
April
2001
Stirling Cooke plans name change to ‘Atlantic Star Insurance’
Stirling Cooke Brown Holdings plans to change its name to Atlantic Star Insurance Group Limited as part a re-branding of the beleaguered broker.
Shareholders will vote on the name change at the company’s annual general meeting on May 23, according to the company’s recent Proxy filing with the SEC.
April
2001
Clarendon America/Eton Management involved in premiums dispute lawsuit
Clarendon America Insurance Company is suing two US Virgin Islands-based brokers for $2.92 million of premiums that were allegedly sent to a firm controlled by Martin Hoffman, instead of to Clarendon.
The lawsuit was filed against Marshall & Sterling of St. Thomas Inc, d.b.a. Theodore Tunick & Co., and Marshall & Sterling of St. Croix Inc. at the US District Court for the District of Delaware on July 14, 2000 before being transferred to Federal Court in US Virgin Islands on April 10, 2001.
March
2001
Stirling Cooke reports record quarterly loss
Fourteen days after its share price collapsed to a record low of 56 cents on NASDAQ, Stirling Cooke Brown Holdings reported a record quarterly net loss of $21.2 million.
March
2001
Poor results for Clarendon Insurance Group
Hannover Re has announced what it described as “disappointing” results for fiscal 2000 for the New York-based Clarendon Insurance Group, which it bought in February, 1999. Although Clarendon’s gross premium income increased by 15 per cent to $1.7 billion, the firm’s after-tax profit “fell markedly from $33.8 million to $1 million”, according to a press release dated March 8.
February
2001
MRM share price plummets after $46.1M charge
Mutual Risk Management’s share price fell by more than 25 per cent in one day after the firm reported a net loss of $37.7 million for the quarter ended December 31, 2000.
The loss was primarily due to MRM taking an after-tax charge of $46.1 million or $1.11 per share to establish a reserve to settle reinsurance disputes relating to its Program Business.
February
2001
Fidelity Low-Priced Fund becomes big investor in Stirling Cooke
A mutual fund that has accumulated a ten per cent stake in financially distressed Stirling Cooke Brown Holdings has one of the best reputations in its peer group.
The Fidelity Low-Priced Stock Fund (Ticker: FLPSX) returned 25.74 per cent over the 12 months ended February 23, 2001, greatly outperforming the S&P500, which lost 7.37 per cent.
November
2000
Martin Hoffman Interview: Part Three
InsideBermuda continues this month with the third installment of our in-depth interview with New York-based businessman Martin Hoffman, who has attracted his fair share of publicity since he entered the insurance industry in the 1960s and has been an active participant in the Bermuda market.
November
2000
Losses mount at Stirling Cooke
Faced with mounting legal bills and no longer earning brokerage commissions and underwriting fees by spinning premiums around in a circle, Stirling Cooke has reported another heavy quarterly loss.
The company lost $2.6 million or 27 cents per share for the quarter ended September 30, almost identical to the corresponding period of 1999.
August
2000
OPL’s massive loss mars generally healthy results for Bermuda insurers
Bermuda Insurance Market Results Round-Up: The quarter ended June 30, 2000 was a healthy one for most Bermuda reinsurers, with six reporting profits, and two suffering losses, including a massive one for Overseas Partners Ltd. The general view was that the market has turned, rates have hardened and that profits should start rolling in again following a dismal 1999.
August
2000
Trial date set for Sphere Drake-Odyssey Re lawsuit
The London Commercial Court has scheduled October, 2001 for the start of a trial relating to a civil lawsuit filed by Sphere Drake Insurance (formerly Odyssey Re-London) against two UK-based subsidiaries of Stirling Cooke Brown Holdings, two former officers of those subsidiaries, and others on February 29, 2000.
July
2000
Ex-NAF&G boss sued by Bank of Bermuda
John Grant Marshall, a Canadian who was the nominal President of the fraudulent, Bermuda-based reinsurer North American Fidelity & Guarantee, is being sued by the Bank of Bermuda for $265,022.
The bank filed a lawsuit against the Bermuda resident and his wife, Greta Lois Marshall, at Bermuda Supreme Court on July 13, 2000. No further details are publicly available.
June
2000
Q&A with Stirling Cooke over potential liabilities from Transamerica arbitration rulings
Inside Bermuda recently carried out a question and answer session with Stirling Cooke Brown Holdings about its potential liability as a result of last year’s Transamerica arbitration rulings, the departure of long-standing associate Reg Billyard, who was portrayed extremely negatively in both arbitration rulings and a new lawsuit filed against it by AXA Re in relation to Hollywood movies.
June
2000
Mark Sioma appointed President of Realm National Insurance Company
Stirling Cooke Brown Holdings Limited has appointed Mark S. Sioma as President of its wholly owned subsidiary, Realm National Insurance Company.
June
2000
Reg Billyard retires, leaves behind carnage
Bermuda-based broker Reg Billyard, whose alleged malpractice has contributed to chaos in world reinsurance markets, appears to have left the industry.
Billyard retired as President of JEH Re Underwriting Management (Bermuda) Ltd. in May and moved from Bermuda to his native England.
June
2000
AXA Re sues over Hollywood movie financing fiasco
Paris-based AXA Re, which faces massive losses from reinsuring Hollywood movies, has filed a lawsuit against Stirling Cooke Brown Holdings, which brokered a small portion of the business.
Stirling Cooke Brown Holdings Ltd., Stirling Cooke Brown Reinsurance Brokers Ltd. and one of the group’s former brokers, Sawtantar Sharma, are defendants with Chase Manhattan Bank and George Litto Pictures Inc., of Wilshire Boulevard, Beverly Hills, California, in a lawsuit filed on May 2, 2000 at the Supreme Court for the State of New York.
May
2000
Everyone’s a winner – Stock review shows vast wealth of insurance officers
John Charman has topped a review by Inside Bermuda of the value of shares that officers of Bermuda-based, publicly-listed insurers hold in the companies they work for.
May
2000
Stirling Cooke under investigation by Lloyd’s of London
Stirling Cooke has disclosed that its UK-based subsidiaries are being investigated by Lloyd’s of London following the apparent insolvency of a Lloyd’s syndicate known as the Alan R. Bird syndicate.
The Bird syndicate is believed to have become insolvent following an arbitration ruling on December 9, 1999 that rescinded reinsurance contracts with Transamerica Occidental Life Insurance Co., primarily on the grounds that Stirling Cooke, in its capacity as broker, had orchestrated an “abnormally tight” reinsurance spiral.
April
2000
Bermuda Insurance Officers’ Compensation Review for Fiscal 1999
A review for 1999 of the financial compensation received by officers of Bermuda’s publicly-listed insurers.
April
2000
Fidelity mutual fund group takes gamble on Stirling Cooke
Boston-based Fidelity Management & Research Corp. has taken a gamble on beleaguered Stirling Cooke Brown Holdings and acquired 8.5 per cent of the company’s outstanding common stock. Fidelity’s shareholding, which is disclosed in Stirling Cooke’s recent Proxy Statement filing, makes it the second biggest shareholder in Stirling Cooke after Goldman Sachs.
March
2000
Stirling Cooke reports $8.8 million loss amid costs of litigation
The cost of being involved in so many lawsuits is taking its toll on Stirling Cooke Brown Holdings, with the company reporting a net loss of $8.8 million for the quarter ended December 31, 1999, compared with a profit of $3.9 million a year earlier.
February
2000
Stirling Cooke lawsuit moved from New York to UK
Stirling Cooke’s share price hit its highest level in several months following the decision of a New York judge to dismiss Odyssey Re’s racketeering lawsuit against the company. Stirling Cooke’s stock closed at $3.69 on February 29 – up by 47 per cent on the month. The major rise occurred after Judge Naomi Reice’s decision on February 28 to dismiss Odyssey Re’s lawsuit on the grounds that the United Kingdom was a more appropriate forum.
January
2000
Transamerica wins second ‘spiral’ arbitration
California-based Transamerica Occidental Life Insurance Co. has won a second arbitration over its refusal to pay multi-million dollar reinsurance claims on coverage brokered by Stirling Cooke Brown Holdings.
The losing party was Alan R. Bird, on his own behalf and representing all members of Lloyd’s Syndicate 103 for the 1993/94 years of account.
January
2000
Alternative Risk Reinsurance Company Ltd.: An Analysis
Inside Bermuda can today disclose further details about a Cayman Islands-registered company that Stirling Cooke Brown Holdings has been so reluctant to discuss.
The reason might be because Alternative Risk Reinsurance Company Limited is a joint venture between Stirling Cooke and the individuals behind New Jersey-based Unicover Managers.
January
2000
Alan Bird lawyer writes that Chubb has ‘deepest pocket’
The Alan Bird Syndicate’s UK attorneys have discussed the possibility of suing the Chubb Insurance Group and Stirling Cooke Brown Holdings in the aftermath of its arbitration loss to Transamerica. Chubb, which previously lost a similar arbitration to Transamerica, is considered to be an attractive target because it has “the deepest pocket”, while Stirling Cooke might escape an action because it was “highly probable that the company will eventually fold”.
January
2000
Alan Bird Syndicate’s attorney: ‘Stop Publishing arbitration ruling’
Letter to OffshoreAlert from attorney Michael Dobias, of Davies Arnold Cooper law firm, representing Lloyd’s of London Syndicate 103, known as the Alan Bird Syndicate.
December
1999
End-of-Year Review of Bermuda’s offshore market
End-of-Year, Month-by-Month Review of Bermuda’s offshore market for 1999.
December
1999
OffshoreAlert Awards For 1999
Annual OffshoreAlert Awards for: Worst Regulator, Worst Regulated Jurisdictions, Lie of the Year, Coward of the Year, Crooks of the Year, Jurisdiction in Most Need of a PR Make-Over, Most Small-Minded Decision, Most Arrogant Jurisdiction, Most Stupid Comments, Here Today, Gone Tomorrow Award, and Most Responsible Regulators.
December
1999
Transamerica Occidental Life Insurance Co. v. Alan R. Bird: Interim Arbitration Award
Interim Arbitration Award and Reasons for Interim Award in Transamerica Occidental Life Insurance Co. v. Alan R. Bird, on his own behalf and as representative of all the members of Syndicate 103 at Lloyd’s for 1993 and 1994.
