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Legion Insurance insolvency worsens

The net deficit of Legion Insurance Company, a former operating subsidiary of Bermuda-based Mutual Risk Management Ltd., increased by $15 million to $637 million in the third quarter of 2007, according to the latest liquidators report.

Legion Insurance’s net deficit increases to $622 m

The net deficit of Legion Insurance Company, a former operating subsidiary of Bermuda-based Mutual Risk Management Ltd., increased by $8 million to $622 million in the first six months of 2007, according to the latest liquidator's report. At June 30, 3007, Legion had assets of $2.73 billion and liabilities of $3.35 billion, reported the Commonwealth of Pennsylvania Insurance Department, which is liquidating Legion.

Insolvencies of ex-MRM subsidiaries balloon in 2006

The net insolvencies of two former operating subsidiaries of Bermuda-based Mutual Risk Management Ltd. rocketed from $334.3 million to $852.6 million in 2006, according to their liquidator. The deficits of Legion Insurance Company and Villanova Insurance Company increased from $225.3 million to $614 million and from $109 million to $238.6 million, respectively, during the year.

Legion Insurance and Villanova Insurance insolvent by an estimated $334 m

Two former operating subsidiaries of Bermuda-based Mutual Risk Management Ltd. had a combined net deficit of $334.4 million as of December 31, 2005, according to their liquidator.Legion Insurance Company and Villanova Insurance Company had deficits of $225.4 million and $109 million, respectively, stated their Statutory Liquidator, Pennsylvania Insurance Commissioner Diane Koken, in her report for the fourth quarter of 2005.

Banks ordered to turn over Stirling Cooke records

Five banks have been ordered to provide details of accounts maintained by the AlphaStar group of companies, formerly known as Stirling Cooke Brown, to its Bankruptcy Trustee.An order directing The Bank of N.T. Butterfield & Son Ltd., Wachovia Bank, Bank of America, North Fork Bank and JP Morgan Chase Bank, NA to turn over the records to Trustee Richard O'Connell was issued at the U. S. Bankruptcy Court for the Southern District of New York on September 22, 2005.

Mutual Risk Management and John Hancock settle litigation

Mutual Risk Management Ltd. has settled litigation with Boston based John Hancock Life Insurance Company, which MRM blamed for causing its collapse.MRM's civil complaint against Hancock was dismissed with prejudice at the U. S. District Court for the Eastern District

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.

Deltec buys into MRM

New York-based fund manager Deltec Asset Management LLC, which specializes in working with distressed companies, has become a major shareholder in Mutual Risk Management Ltd.

Legion Insurance awarded $21.5 million in arbitration

Mutual Risk Management subsidiary Legion Insurance Company has been awarded $21.5 million in an arbitration against John Hancock Life Insurance Company.The award was for damages and expenses caused by Hancock's "failure to pay reinsurance proceeds to Legion", according to a

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.

MRM in class action settlement talks

Negotiations are underway to settle a class action lawsuit filed by shareholders against Mutual Risk Management and several of its former officers and directors.Details are contained in a filing at the U. S. District Court for the Southern District of California on July 30, 2003 in which the defendants agreed to withdraw their motion to dismiss the complaint.

Mixed month for Mutual Risk Management

July was a significant month for Mutual Risk Management, with two of its subsidiaries going into liquidation in the United States and a scheme of arrangement being approved for the company itself.The bad news for the firm came when liquidation orders were issued for Legion Insurance and Villanova Insurance by the Commonwealth Court of Pennsylvania on July 28.

MRM subsidiaries to go into liquidation, judge criticizes Pennsylvania regulator

A Pennsylvania judge has criticized state insurance regulators in the United States and reinsurers for failing to save two property and casualty subsidiaries of Bermuda-based Mutual Risk Management. On June 26, Judge Mary Hannah Leavitt granted petitions from Pennsylvania Insurance Commissioner Diane Koken to liquidate Legion Insurance Co. and Villanova Insurance Co.

New lawsuit filed against Mutual Risk Management

One new civil complaint was filed against Mutual Risk Management in May - a month when the group announced a restructuring through a Scheme of Arrangement in an attempt to stave off liquidation.The action was brought by Stephen Friedberg against

Insider Talking: February 28, 2003

Christopher Stone, ex-Managing Director of now-defunct, Dominica-based Investors Bank and Trust Ltd. was released from custody in Belgium in February on bail of 125,000 Euros, said a source; A default judgment for $130 million was entered against Bahamas-registered Vavasseur Corp. at the U. S. District Court for the Western District of Virginia on February 21, 2003 for its part in an international Ponzi scheme; Grenada Supreme Court issued a $125 million judgment against Van Arthur Brink, a.k.a. Gilbert Allen Ziegler, former head of the First International Bank of Grenada; Allen Wheatley, former Financial Secretary of the British Virgin Islands, was sentenced to serve five months in prison on February 17 after being found guilty of corruption charges; Cayman Islands-based businessman Kenneth Dart has acquired a 5.7 per cent stake in financially crippled, Bermuda-based insurance firm Mutual Risk Management; British trader Sean Alexander Quinn, 36, was released from prison in Barbados on December 5, 2002 after pleading guilty to an amended charge of money laundering; Receivers for the fraudulently-operated asset planning group Merrill Scott & Associates have found $1.03 million of assets in the Cayman Islands; The Bahamas Ministry of Finance expects to receive a report on the status of the financially-troubled Bahamas International Securities Exchange in the first week of March, 2003; The number of companies incorporating in the Cayman Islands has steadily decreased over the last three years, according to a report by Cayman Net News based on information provided by the Registry General; Florida-based Briton Edward Myles Chism Jr., 63, was taken into custody in Florida on February 7, 2003 - one day after being criminally indicted on three counts of tax evasion at federal court in Miami; Bermuda may be about to lose its grip at the top of the offshore world; and The Irish Minister for Justice has applied to Ireland's High Court for an order directing the Cayman Islands branch of Ansbacher International to pay US$3.1 million to cover the costs of a long-running inquiry into corruption and tax evasion.

MRM seeks protection at US Bankruptcy Court

Mutual Risk Management has filed a bankruptcy petition in the United States and is seeking an automatic stay of all of the legal proceedings that have been filed against it and a ban on new actions.

Cayman-based businessman takes stake in distressed Bermuda insurance firm

Cayman Islands-based businessman Kenneth B. Dart, whose family made a fortune in the Styrofoam cup business, has acquired a 5.7 per cent stake in financially crippled Mutual Risk Management. Dart's firm Ross Financial Corporation, which is domiciled in Cayman, has acquired 2,377,600 common shares, according to a Dart-signed document dated February 13, 2003 that was filed with the SEC.

Meeting for MRM creditors to discuss Scheme of Arrnagement

Major creditors of Mutual Risk Management Ltd. are scheduled to meet in Bermuda on February 5, 2003 at which they will be asked to approve a proposed Scheme of Arrangement for the financially-troubled firm.Under the proposals, senior debt-holders would become the majority owners of current MRM-subsidiary MRM Services Ltd., doing business as IAS Park.

Mutual Risk Management finally files 2001 financials

At a time when Mutual Risk Management was desperate for cash to meet its liabilities, its then Chairman and CEO, Robert Mulderig, owed the firm an advance of $318,303, according to an SEC filing. Details of the debt, which has

Robert Mulderig replaced by David Ezekiel at MRM

Robert Mulderig has retired as Chairman and CEO of financially troubled Mutual Risk Management Ltd., effective November 1, 2002, according to an MRM filing with the SEC. He has been replaced by David Ezekiel, who is President and Managing Director

MRM allegedly offers $100 million to settle Legion claims

Mutual Risk Management has made a $100 million offer to the Pennsylvania Insurance Department to settle all claims relating to its subsidiary in rehabilitation, Legion Insurance Co., it has been claimed.Details about the purported offer are contained in the latest of several civil lawsuits filed by clients and shareholders against the MRM group in the United States and Bermuda.

Mutual Risk Management companies fight Companies Act applications

Two lawsuits that may be winding up petitions have been filed against companies that are part of the Mutual Risk Management Group.Both actions were filed at Bermuda Supreme Court under The Companies Act 1981, according to a source. This is

New lawsuits filed against Mutual Risk Management

Three new civil lawsuits - one in Bermuda and two in the United States - have been filed against members of the Mutual Risk Management group.On July 30, 2002, Aegis Corporation and Principal Insurance Managers filed an action against Mutual Indemnity (Bermuda) Ltd. at Bermuda Supreme Court.

More class action complaints filed against Mutual Risk Management Ltd

Two more class action lawsuits were filed against Mutual Risk Management Ltd. during July, bringing the number of shareholder actions to five over the last two months.As with the previous suits, they were both filed in the U. S. District Court for the Southern District of California and the defendants in each were MRM, Robert A. Mulderig, James C. Kelly and Andrew Cook.

Vultures circle Mutual Risk Management: Three class action lawsuits filed

Three Class Action lawsuits were filed against Bermuda-based insurance firm Mutual Risk Management and three of its current and former officers in June. The complaints were all filed at the United States District Court for the Southern District of California, in San Diego, on June 7, June 24 and June 25.

Class action lawsuit filed against Mutual Risk Management

A class action lawsuit has been filed in California against Mutual Risk Management Ltd. and three of its current or former senior officers, alleging misrepresentation of the firm's finances. The civil lawsuit was filed at the United States District Court for the Southern District of California on June 7, 2002.

$3 m of MRM assets frozen, two new lawsuits filed

A United States-based trucking concern has obtained a $3 million asset freeze order against the financially troubled Mutual Risk Management group. Bermuda Supreme Court issued the order on April 25, 2002 after an application that same day by Franklin Logistics Inc.

MRM insurance subsidiaries taken over by Pennsylvania regulator

Mutual Risk Management subsidiaries Legion Insurance Co. and Villanova Insurance Co. have gone into "voluntary rehabilitation" following court action by Pennsylvania Insurance Commissioner Diane Koken. The rehabilitation orders, which were granted by the Commonwealth Court of Pennsylvania on March 28, 2002, become effective April 1, 2002.

MRM subsidiaries enter rehabilitation in Pennsylvania

Mutual Risk Management subsidiaries Legion Insurance Co. and Villanova Insurance Co. have gone into “voluntary rehabilitation” following court action by Pennsylvania Insurance Commissioner Diane Koken. The rehabilitation order, which was granted by the court on March 28, 2002, becomes effective April 1, 2002.

Q4 2001 Results Round-Up for Bermuda insurers

Seven Bermuda insurers reported fourth quarter earnings in February, with Mutual Risk Management, XL Capital and Annuity and Life Re posting losses and ACE, IPC Holdings, PartnerRe and Scottish Annuity reporting profits.

MRM faces July trial on civil RICO allegations

The collapse of its share price to penny stock status, downgrade of its credit ratings, breach of debt covenants and uncollectible reinsurance are not all Mutual Risk Management has to worry about. A jury trial is due to start at Gwinnett Superior Court, Georgia on July 29, 2002 in which MRM is a defendant in a civil lawsuit filed under the Racketeering Influenced and Corrupt Organizations Act.

MRM stock falls to all-time low

The share price of Mutual Risk Management fell to an all-time low of $2.72 during morning trading on the New York Stock Exchange today after the troubled company announced it was delaying the release of its 2001 earnings.

Problems worsen at Mutual Risk Management

Mutual Risk Management's problems worsened in December when the firm announced that it expects to report a fourth-quarter loss after putting aside $30 million to pay larger than expected claims.This prompted an immediate negative response from credit rating agencies, with Standard & Poor's raising "concerns" about the ability of the firm's management to pull it through its crisis.

Mutual Risk Management sued by law firm in dispute over fees

Mutual Risk Management Ltd. and two of its subsidiaries have been named as defendants in a civil lawsuit filed in California under the Racketeering Influenced and Corrupt Organizations Act.The action has been brought by Los Angeles based law firm Hollins

MRM completes corporate restructuring

Mutual Risk Management announced on September 20 that it had completed the restructuring of its operations into two separate holding companies.One of the holding firms will be for its Specialty Insurance company business and the other for its Corporate Risk