EMLICO

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.

Kemper Reinsurance and the Bermuda-based joint liquidators of Electric Mutual Liability Insurance Company have announced a settlement of their long and acrimonious dispute over EMLICO's insolvency.

The complicated legal battle over whether General Electric-subsidiary Electric Mutual Liability Insurance Company Limited should be liquidated in Massachusetts or Bermuda is scheduled to be heard by the Privy Council in London - the highest court in Bermuda's judicial system - next month.In an added twist to a drama whose circumstances change on a regular basis, Kemper Re brought, on February 20, its second lawsuit at Bermuda Supreme Court challenging the decision to allow EMLICO to redomicile to Bermuda.