John Charman setback in battle with estranged wife
AXIS Capital CEO John Charman has lost the latest round of a bitter battle with his estranged wife over a Bermuda family trust.
Bermuda P&I Club sues members
A Bermuda-based protection and indemnity club is suing some of its members for allegedly failing to pay premium calls.
Details are contained in a civil lawsuit filed by The Steamship Mutual Underwriting Association (Bermuda) Ltd. at the U. S. District Court for the Southern District of New York on November 16, 2005.
Starr Excess/HealthSouth dispute slated for arbitration
A judge has granted an application by Bermuda-based, AIG-controlled Starr Excess Liability Insurance Ltd. to have a $5 million coverage dispute with scandal-plagued HealthSouth Corporation arbitrated, rather than litigated.In a ruling on November 3, 2005 at the U. S. District Court for the Northern District of Alabama, Judge Karon O'Bowdre ordered the parties to submit to arbitration but stayed her decision pending a ruling in separate but related proceedings.
11 new insurers & $10 b of capital hurtle towards Jan. 1 renewal bonanza
At least eleven new insurers have incorporated in Bermuda over the last two months, bringing with them capital that is likely to top $10 billion once financing has been completed. If Jan. 1 policy rates are as high as many expect them to be, these firms will have not so much a license to offer insurance as one to print money.
All have set themselves capital-raising targets from $500 million to $1.5 billion, with $1 billion being the most popular target figure.
SEC and class action law firms target RenaissanceRe
Bermudian Michael Cash, who resigned as on officer of RenaissanceRe after refusing to accept service of an SEC subpoena, will soon have a few more process servers at his door.Along with four other officers and the company itself, Cash has been named as a defendant in at least two class action complaints filed at the U. S. District Court for the Southern District of New York.
Bermuda firm seeks to avoid coverage
A Bermuda-registered firm is seeking a court declaration that it is not liable for insurance claims arising from a collision between a train and a car in Louisiana in 2001.Details are contained in a civil complaint that was filed at the U. S. District Court for the District of Vermont on July 11, 2005.
Imagine Group claims ignorance in dealings with Barbados reinsurer
Bermuda-based reinsurer Imagine Group, which has gone through two CEOs in less than three years, claims it did not know one of its own directors was the president of a Barbados reinsurer it bought reinsurance from in 2003, reported The Royal Gazette newspaper on July 20.Imagine's Chief Financial Officer, Mike Daly, said his firm's purported due diligence on Union Excess Reinsurance never uncovered the identity of Union's president, Trevor Carmichael, who is also an Imagine director, reported the Gazette.
Fidelity maintains position as ‘owner’ of Bermuda market
Fidelity - the largest mutual fund group in the United States - has maintained its position as the largest single investor group in the Bermuda insurance market.Fidelity owns at least five per cent of common shares in eight of the 14 Bermuda-based, publicly-listed insurers whose ownerships were reviewed by InsideBermuda. That is three more major investments than another Boston, Massachusetts-based fund group, Wellington Management, which was revealed as the second biggest ownership group in our review. Collectively, Fidelity's stakes have a market value of more than $2.7 billion, with Wellington just behind at $2.5 billion.
John Head resigns from ESG Re
After running the specialist reinsurer into the ground, John C. Head III has resigned as chairman, director and employee of Bermuda-domiciled ESG Re.His departure was announced in ESG Re's latest earnings release in which it reported a net loss of $12.4 million for the 12 months ended December 31, 2004, compared with a loss of $11.8 million in 2003.
AXIS Capital boss tops shareholdings review at $182 m
AXIS Capital President and CEO John Charman is Bermuda's $182 million man, according to the latest review of own-company shareholdings that is conducted annually by InsideBermuda.
That is the current market value of shares in AXIS that Charman beneficially owns, as reported by the firm in its most recent proxy statement filing with the SEC.
Contempt action filed against Bermuda insurer and law firm
A lawsuit alleging contempt of court has been brought in the United States against Bermuda's biggest law firm, Conyers Dill & Pearman, and one of its clients, ACE Insurance Company Ltd.
They are defendants in an adversary proceeding filed at the U. S. Bankruptcy Court for the District of Arizona on April 18, 2005 by Gerald Smith, as Plan Trustee of Boston Chicken Inc. and related parties, and as assignee of former Boston Chicken officers or directors Scott A. Beck and Peer Pedersen.
Insurer seeks to enforce ‘$27 m arbitration award’
An insurer has asked a court to order Bermuda-based Scandinavian Reinsurance Company Ltd. to pay $27.88 million to satisfy a final arbitration award.Continental Casualty Company, of Chicago, filed a motion to confirm the award against Scandinavian Re at the U. S. District Court for the Northern District of Illinois on April 21, 2005. The award was issued in two parts, on March 23 and April 16, 2005, and concerned a dispute over two reinsurance contracts, stated the petition.
OIL Insurance sued for $2.6 m in Oklahoma
A civil complaint against Bermuda-based OIL Insurance Ltd. has been re-opened at the U. S. District Court for the Western District of Oklahoma.Oklahoma-based Chesapeake Mountain Front LLC, formerly known as K. Stewart Petroleum Corporation, is seeking $2.6 million under the terms of a "control of well" insurance policy. The complaint was initially filed on December 4, 2002 against Certain Underwriters at Lloyd's of London, with OIL and Noble Energy Inc., successor by merger to Samedan Oil Corporation and successor by name change to Noble Affiliates, Inc., being added on July 31, 2003.
2004 Bermuda Insurance Market Compensation Review: Montpelier Re boss tops contemporaries with $15.3 m package
Stock option profits of $9.8 million helped make Anthony Taylor the best compensated officer of a Bermuda-based, publicly-listed insurer in 2004.The Chairman, President and CEO of property and casualty reinsurer Montpelier Re received a total package worth $15.3 million during the 12-month period, propelling him into top spot in InsideBermuda's compensation review, compared with 31st position a year earlier.
SEC subpoenas RenaissanceRe
RenaissanceRe Holdings Ltd. announced on February 28 that it had received a subpoena from the Securities and Exchange Commission in connection with an industry-wide investigation into non-traditional insurance products.
Bermuda firms sued over business interruption coverage
Two Bermuda companies are among several insurers being sued for allegedly refusing to pay a business interruption claim concerning a mine fire in Pennsylvania.
Allied World Assurance Company Ltd. and XL Insurance (Bermuda) Ltd. are defendants alongside Berkshire Hathaway Inc., incorporated in Delaware and based in Stamford, Connecticut; National Fire & Marine Insurance Company, incorporated and based in Nebraska; Commonwealth Insurance Company, of Vancouver, Canada; International Mining Industry Underwriters Ltd., of London, England; International Insurance Company of Hannover Limited, of Surrey, England; Lloyd's of London, Hiscox Syndicate Limited, Ascot Underwriters Limited, and R. J. Kiln & Co. Limited, all c/o Mendes & Mount, New York.
AEGIS sued for up to $1 m of coverage
Associated Electric & Gas Insurance Services Ltd., which is incorporated in Bermuda and based in Jersey City, New Jersey, is being sued for allegedly failing to pay out on an insurance policy of up to $1 million.
A complaint for declaratory judgment was filed against AEGIS at the U. S. District Court for the Southern District of New York on February 15, 2005.
Mutual Indemnity boss fights bid to take his testimony
David Alexander, President of Mutual Indemnity (Bermuda) Ltd., is fighting an attempt by two insurers to take his testimony for a yet-to-be-filed lawsuit in the United States.
A petition to take his testimony and collect evidence from Mutual Indemnity was filed by Aegis Corporation and Principal Insurance Managers, Inc., both of Brookfield, Wisconsin, at the U. S. District Court for the Eastern District of Pennsylvania on November 3, 2004.
Two lawsuits filed against Steamship Mutual in US
Two lawsuits for allegedly failing to pay claims were filed recently in the United States against Steamship Mutual Underwriting Association (Bermuda) Limited, a Bermuda-based P&I Club.
The first complaint was filed on November 5, 2004 at the U. S. District Court for the Southern District of New York by Penn Maritime, Inc., as successor-in-interest to Morania Oil Tanker Corp., which is incorporated in Delaware.
1999 BF&M fraud settlement enters its final phase
The last phase of the 1999 settlement between the liquidators of Bermuda Fire & Marine Insurance Limited and BF&M Ltd., which was fraudulently spun off from it, has begun.
Part of the $60 million agreement to settle litigation at Bermuda Supreme Court included Bermuda Fire & Marine receiving options to buy shares in BF&M.
Alternative Re and Arch Excess sued in South Carolina
A South Carolina risk purchasing firm is suing two Bermuda companies for at least $122,000 in damages and an injunction preventing the commutation of an insurance policy.
The action was filed at the U. S. District Court for the District of South Carolina on August 31, 2004 against Alternative Re Holdings Ltd., of Bermuda, Arch Excess & Surplus Lines Insurance Co., of Bermuda; and Indiana Provider Coalition Inc., of Indiana. Plaintiff LTC Risk Purchasing Group Inc., of South Carolina, alleges beach of contract and is seeking an accounting, declaratory relief, and injunctive relief.
ACE share price holds up despite lawsuit from Connecticut AG
The share price of Bermuda-based ACE Ltd. has been unaffected by a lawsuit alleging that one of its subsidiaries paid a $50,000 bribe to broker Marsh & McLennan to secure an $80 million state contract.
ACE's shares ended January at $43.40 per share on the New York Stock Exchange, virtually unchanged from the day before the complaint was filed at Connecticut Superior Court by the State of Connecticut on January 21, 2005. The price was 19 per cent higher than the day before the Marsh scandal began on October 14, 2004.
Aspen Specialty boss resigns over misstated educational credentials
The head of an Aspen Insurance-subsidiary resigned in December after admitting that he "misstated his educational credentials in U. S. insurance regulatory submissions", stated the company.
Aspen gave no further details about the reasons for the departure of Peter Coghlan as President and CEO of Aspen Specialty Insurance Company in a press release dated December 13, 2004. Coghlan has been replaced by Chris Maciejewski, who has served as Executive Vice President and Chief Casualty Underwriter of Aspen Specialty since 2003.
Arch Capital and AXIS Capital receive subpoenas
Arch Capital Group and AXIS Capital Holdings both reported in December that they had been issued with subpoenas as part of industry-wide investigations by various U. S. authorities.
Bermuda firms sued over D&O coverage by ex-Enron director
A former director of Enron has taken legal action against three Bermuda insurers and other firms concerning directors and officers coverage.Ken L. Harrison, who was once an Enron director and CEO/President of Portland General Electric Company, an Enron subsidiary, filed a complaint at the U. S. District Court for the Southern District of New York on October 20, 2004.
Class action law firms circle Spitzer’s ‘kill’
Class action law firms in the United States are targeting at least two Bermuda insurers and their officers as a result of Eliot Spitzer's investigation into alleged bid-rigging at broker Marsh & McLennan.At least three separate class actions alleging securities fraud have already been filed against ACE Ltd. and two against AXIS Capital Holdings Ltd. at federal courts in New York and Pennsylvania.
Richard King resigns from River Capital Group
Two weeks after our story on River Capital Group Inc. last month, the firm notified the SEC that Richard King "the Chairman of the Board of Directors, resigned from all of his positions with the registrant".
No reason for King's decision was given in the filing, which was signed by RCGI's "President", Howard Taylor. An odd aspect of the September 21, 2004 filing was its description of King as the chairman, while the firm's previous SEC filing on August 23, 2004, stated that this position was held by Taylor, who was also President and CEO.
Déjà vu: Spencer-Arscott firm turned down for insurance license
For the second time in seven years, a proposed reinsurer headed by former AON (Bermuda) boss Robin Spencer-Arscott has been turned down for an insurance license.The failed application to the Bermuda Monetary Authority was on behalf of River Reinsurance Ltd., which is owned by Bermuda-based River Capital Ltd.
AM Best downgrades Centre Solutions
A.M. Best Co. has downgraded the financial strength rating of Centre Solutions (Bermuda) and its operating subsidiaries - prompting the insurer's management to request that they no longer be rated.The withdrawal request came after the ratings firm downgraded Centre Solutions and its operating subsidiaries from B+ (Very Good) to C++ (Marginal) on August 5, according to Best.
Bermuda Fire & Marine sues to enforce arbitration award
Bermuda-based companies are among 14 insurers who have filed a petition to enforce arbitration awards totaling $1.2 million against two New York-based firms.The action concerns unpaid reinsurance claims from the failed United Kingdom-based underwriting pool known as H. S. Weavers (Underwriting) Agencies Limited, which stopped underwriting in 1990.
AXIS Capital subpoenaed by Eliot Spitzer
AXIS Capital Holdings Ltd. has become the latest firm to be subpoenaed by New York State Attorney General Eliot Spitzer as part of an investigation into incentive commission agreements between insurers and brokers.
ACE subsidiaries settle class action for $14 m
Four subsidiaries of ACE Ltd. have agreed to pay $14 million to settle a class action lawsuit filed in the United States on behalf of 900 firms that bought 1,100 workers' compensation policies from 1997 to 1999.A settlement was announced on July 28, 2004 by lead class attorney Joseph Roda, of RodaNast P. C., and came after four years of litigation and on the eve of trial.
NYSE suspends trading in Annuity & Life, de-listing to follow
The New York Stock Exchange has suspended the shares of financially-troubled Annuity and Life Re (Holdings) Ltd. pending the completion of action to de-list them.The suspension was announced by NYSE on July 27, 2004 and became effective before the opening of trading on July 30. Annuity & Life has advised the Exchange that it will not challenge the action.
Annuity & Life Re proposes reverse stock split
Financially beleaguered Annuity & Life Re has sunk to the depths of proposing a reverse stock split in an attempt to maintain its listing on the New York Stock Exchange.
A proposal to split the stock at a specified ratio within a range of one-for-two to one-for-twenty will be put to shareholders at the company's AGM that is due to be held in Bermuda on August 5, 2004.
AT&T sues XL Insurance over 9/11 coverage
AT&T Corp. has filed a civil complaint against 15 insurers, including XL Insurance (Bermuda) Ltd., over allegedly unpaid property damage and business interruption claims concerning 9/11.
The telecommunications giant, which is registered in New York but based in New Jersey, is seeking an award of not less than $139 million in an action filed at New Jersey Superior Court on June 11, 2004.
Capital Z sues Examination Management Services for $225,000
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
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
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
Bermuda News Briefs:Â 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
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.
Class action lawsuit against XL Capital
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
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
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.
New CFO for Annuity & Life
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.
Capital Z seeks to block Superior National/Health Net settlement
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
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
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
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.
‘Len Quick and I did not approve massive bonuses,’ writes AlphaStar CEO Stephen Crane
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
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.
