Listed Securities

Mutual Risk Management fires auditor

Bermuda-based Mutual Risk Management, whose shares are traded on the New York Stock Exchange, has dismissed its auditor of 18 years, KPMG Peat Marwick, and replaced it with Ernst & Young - but will not officially say why.

BF&M policyholders’ ‘not at risk’

Long-term policyholders with BF&M Ltd. are not at financial risk because of a multi-million dollar lawsuit brought against the firm by the liquidators of its former parent, BF&M's lawyers have claimed. Although BF&M Life Insurance Company Ltd. is named as a co-defendant in the lawsuit, long-term policyholders are protected under Bermuda law, said lawyer Timothy Marshall, of Marshall & Company.

Mutual Risk Management acquires CFM Insurance

Mutual Risk Management has agreed to acquire CFM Insurance Managers, a Bermuda company which provides risk management services to captive insurance firms based on the island. Several CFM clients are subsidiaries of European companies and many are involved in the international marine insurance market, a release announcing the deal stated.

Bermuda Stock Exchange to set up investors’ compensation pool

A pool of money to help compensate investors who will lose out in the event of a trading member of the Bermuda Stock Exchange collapsing is likely to be in place by the end of the year, we have been told. To get the pool started, each trading member of the Exchange will be asked to contribute a one-off lump sum.

Entertainer sues owner of Henry VIII restaurant

Entertainer Peter Stoney is suing the company that owns the Bermuda-based Henry VIII bar and restaurant for $32,600, claiming wrongful dismissal.Mr. Stoney, who claims he is contracted to work for the business until at least December 31, 1995, has had his contract terminated by Henry VIII boss Any Allan.

RenaissanceRe goes ahead with IPO 18 months late

Bermuda-based property catastrophe reinsurer Renaissance Re is going ahead with a $50 million initial public offering of its shares, 18 months after canceling an IPO of more than $100 million due to a decline in the world investment climate.Renaissance Re. will offer 2.7 million shares, which represents ten per cent of the company's capital.

Bermuda Fire & Marine lawsuit nears for top businessmen

A decision on whether to sue some of Bermuda's most influential local businessmen for millions of dollars, stemming from the collapse of Bermuda Fire & Marine Insurance, is expected to be made over the next couple of months. At stake is over $100 million owed to creditors of Bermuda Fire & Marine Insurance and the credibility of Bermuda's regulatory and legal system in relation to protecting the rights of foreigners doing business with Bermuda-based insurers and reinsurers.

Shoreline Mutual moves away from mutual insurance

Bermuda-based Shoreline Mutual, which issues certificates of financial guarantee for vessels entering US waters, has arranged further reinsurance for all its members to protect them against supplemental cash calls being made in the event of substantial claims.The policy, which has been placed by Willis Faber & Dumas and Sedgwick Marine & Cargo and is underwritten 100 per cent at Lloyd's, is expected to strengthen Shoreline's product in the battle for business with its main rival, First Line, which is also based in Bermuda.

Bermuda firms battle for share of COFR market

Insurance executives aligned to two groups in Bermuda have been working frantically over the last few weeks to provide the first certificates of financial responsibility now required of shipowners whose vessels will enter US waters. Up for grabs are tens of millions of dollars in annual premiums. David Marchant looks at Bermuda's newest reinsurance product and assesses the winners and losers.

Possible insider trading in BF&M shares

BF&M Ltd announced a ten per cent stock dividend to shareholders yesterday - only days after some of the largest volumes of trading in its shares for several months. A decision to reward long-suffering shareholders of BF&M Ltd, who have seen their capital investment drop from $10.50 per share in June, 1993, to $6.75 currently, was taken by BF&M's board of directors on December 20.

BSX to start accepting member applications

Stock brokers in Bermuda and overseas will be able to join the Bermuda Stock Exchange as of next week, we can reveal. Literature explaining how to join is due to be sent out over the holiday period to investment firms locally and in North America, where there has been a lot of interest from brokers.

Telco files lawsuit in battle for control of Bermuda Cablevision

Bermuda Telephone Company Ltd has legally challenged the control and ownership structure of Bermuda Cablevision, in which it is the largest shareholder.Telco filed a writ against the cable television supplier at Bermuda Supreme Court on Tuesday under Section 111 of the Companies Act 1981.The section allows shareholders to sue their company if they believe they are a victim of "oppressive or prejudicial conduct".

Bermuda investors seek to sell Turks & Caicos property

FOR SALE - 1,375 acres of undeveloped land in uninhabited East Caicos, 50-100 yards from the ocean, asking price: in excess of $563,750.The seller is Solar Enterprises, the only local company listed on the Bermuda Stock Exchange whose shares have never traded.

Dubious Canadian firm forms Bermuda subsidiary

A Canadian company described as "a disaster waiting to happen" has incorporated a subsidiary in Bermuda to promote the firm's interests overseas.International Hi-Tech Industries Inc, which is listed on the notorious Vancouver Stock Exchange, has a net worth of CDN$4 million.But the company's market capitalization — the value placed on it by investors in the marketplace — stands at a staggering CDN$335 million even though Hi-Tech reportedly has no sales revenue and no contracts for any sales.

Bermuda Fire directors stay silent despite allegations of fraud at Bermuda Fire & Marine Insurance

Despite the strong criticisms of the collapse of Bermuda Fire & Marine Insurance, the company's vice-chairman, lawyer and former UBP MP William Cox, yesterday maintained his year-long public silence on the affair."I have no comment," said Mr Cox, who is the senior partner in law firm Cox & Wilkinson.Bermuda Fire's chairman, former government Senate leader Charles Collis, the senior partner in law firm Conyers, Dill & Pearman, was not available for comment.Other directors who voted to approve the controversial split-up of the company in 1991 have steadfastly refused to comment publicly on their actions since Bermuda Fire went into provisional liquidation in November, 1993.

Bermuda attacked by US politicians over Bermuda Fire ‘fraud’

A powerful political body in the US has launched a blistering attack on Bermuda over its handling of the collapse of Bermuda Fire & Marine Insurance.Over $40 million in assets that were dividended out to the insurer's shareholders in 1991 has been described as "a prime example of outrageous irresponsibility by an offshore insurance company".The matter was "exacerbated by a cavalier disregard for the consequences on people living elsewhere", said a report released this week entitled ‘Wishful Thinking: A World view of Insurance Solvency Regulation.'

ACE shares fall due to extra reserving for implant claims

Shares in excess liability insurer ACE Ltd. fell by $2 per share on the New York Stock Exchange yesterday in unusually heavy trading after the firm announced it was setting aside another $200 million to meet breast-implant litigation claims.

ACE downplays exposure to breast implant litigation

Potential losses from breast implant litigation in the United States should not cause undue problems for Bermuda-based excess liability carriers ACE and XL, both companies said this week.