Superior National Insurance Group Inc.

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.

Superior National Insurance Group Inc., which recently settled its dispute with Bermuda-based Inter-Ocean Re over the non-payment of a $175 million claim, was taken over by regulators in California on March 3. "Financial examinations of Superior National undertaken by the Department revealed that the company was in hazardous financial condition and was severely under reserved," stated the Department of Insurance. 

Superior National Insurance Group Inc. vs. American Reinsurance Company et al. - Bermuda Supreme Court

Industry watchers have been taken aback by the aggressive strategy adopted by Superior National Insurance Group Inc. in its $175 million contract dispute with Inter-Ocean Re and Inter-Ocean's principal shareholder, American Re-Insurance Company.Not content to wait for the outcome of arbitration proceedings that are due to be held soon in New York, Superior National filed a lawsuit against both parties in Los Angeles County Superior Court on September 7 in which they seek $200 million.