Norad Reinsurance liquidators have announced a second dividend of six cents in the dollar.David Brown, one of two joint liquidators, says he aims to begin paying the $2.5 million cash distribution next week to Norad's 125 creditors.
Bermuda-based financial reinsurer, Independence Insurance Co Ltd has stopped writing new or renewal business and is asking policyholders whether they wish to commute or novate existing contracts or have them run off.
London Market brokers have collected more than $5 million for the account of the insolvent Bermuda-based Aneco Reinsurance Underwriting Ltd, the first meeting of Aneco creditors was told in Bermuda March 26.However the funds are subject to a "mareva injunction" freezing all Aneco's assets in the United Kingdom, according to provisional liquidator Malcolm Butterfield.
Aneco Reinsurance creditors have formally rejected an attempt by Aneco chairman Mark Hardy to block the appointment of liquidators from the accounting firm of Coopers and Lybrand. Attending their first meeting yesterday at the Chamber of Commerce, they voted overwhelmingly that C&L's Peter Mitchell and Christopher Hughes be named joint liquidators of Aneco - formerly one of the leading underwriters of captive reinsurance business in Bermuda.
Norad Reinsurance Company is insolvent by almost $34.6 million according to liquidators' latest statistics released to approximately 100 creditors last week.The figure represents the estimated size of the net deficiency of assets to meet total liabilities of just under $37.6 million. But liquidator David Brown says efforts to collect outstanding amounts from Norad's reinsurers are by no means over and could yet help swell the Norad estate by the best part of a million dollars.
The Dallas Cowboys, the San Francisco 49ers, the LA Rams and six other NFL teams are being sued for at least $14.5 million by Bermuda liquidators working on the winding-up of the insolvent mutual N.F.L. Insurance Ltd (NFLIL).Liquidators David Lines and Peter Mitchell claim that the defendants, who were all members of the mutual, are jointly and severally liable to NFLIL for the as yet indeterminate cost of winding it up and for the mutual insurer's debts and liabilities of more than $14.5 million.
For the first time since their appointment in the summer of 1985, Mentor Insurance liquidators have detected a dim ray of light coming from what they hope will prove to be the end of a very long tunnel.
Aneco Reinsurance Underwriting Ltd chairman Mark Hardy has instructed his lawyers to commence legal proceedings against the underwriters, cedants and brokers responsible for handling Aneco's property catastrophe book of business. The action, to be brought either in Bermuda or in London, will seek damages in connection with the underwriting and placement of this business with Aneco.
Aneco Reinsurance Underwriting Ltd, the beleaguered Bermuda-based reinsurer which is fighting three separate applications to have it placed in liquidation, has won an appeal, on technical grounds, against a winding-up petition started six months ago by Mutual Indemnity Ltd.But the Bermuda Appeal Court's decision, handed down November 28, is already the subject of intense legal scrutiny which may yet produce an appeal to Britain's Privy Council - the highest court of appeal for litigants in the UK's dependent territories.