Bermuda-incorporated entities M to N

2019. February 13. Bermuda-based reinsurer Maiden Holdings is facing a class-action lawsuit which alleges that it made “misleading statements” about its business. Several law firms yesterday posted press releases to persuade investors who had lost money from the sharp fall in Maiden’s share price over the past year to join the suit. The firms aim to recover damages through the courts for buyers of Maiden shares under US securities laws. The suit focuses on Maiden’s reinsurance of its AmTrust portfolio and states that it failed to ensure that this business was properly priced and that it did not expose Maiden to the risk of excessive losses. The suit, which was filed in the US District Court for the District of New Jersey, on Monday, names Michael Wigglesworth as the plaintiff and Maiden Holdings Ltd, as well as former executives Arturo Raschbaum, Karen Schmitt and John Marshalek as defendants. The action is on behalf of all purchasers of Maiden common stock between March 4, 2014 and November 9, 2018, seeking to pursue remedies under the Securities Exchange Act 1934. Maiden’s share price has fallen more than 80 per cent over the past year and the company has reported five losses in the past six quarters. Maiden did not respond to a request for comment by press time last night.

2018. December 28. Enstar Group Ltd has completed its acquisition of a US subsidiary of fellow Bermuda-based company Maiden Holdings Ltd. Enstar, a company that specializes in acquiring and managing companies and portfolios in run-off, said last night it paid out $272.4 million to buy Maiden Reinsurance North America, Inc. Maiden Re North America is a diversified insurance company, domiciled in Missouri, that provides property and casualty treaty reinsurance, casualty facultative reinsurance and accident and health treaty reinsurance. As previously disclosed, the transaction included novation and retrocession agreements pursuant to which the company’s subsidiary, Cavello Bay Reinsurance Ltd, assumed certain Maiden Re business in exchange for a ceding commission. The $272.4 million represents the adjusted purchase price less the ceding commission. At closing, Enstar assumed approximately $1.3 billion of net loss and loss adjustment expense reserves and unearned premium reserves. Enstar is a market leader in completing legacy acquisitions, having acquired over 80 companies and portfolios since its formation in 2001. Enstar’s active underwriting businesses include the StarStone group of companies, an A- rated global specialty insurance group with multiple global underwriting platforms, and the Atrium group of companies, which manage and underwrite specialist insurance and reinsurance business for Lloyd’s Syndicate 609. Enstar Group shares gained $2.34, or 1.46 per cent on the Nasdaq Stock Exchange yesterday, while Maiden Holdings rose four cents, or 2.7 per cent, to close on $1.52.

2018. November 13. Shares of Bermuda-based reinsurer Maiden Holdings plummeted 31.8 per cent yesterday, after the company announced a hefty third-quarter loss when analysts had forecast a profit. The company also continued its ongoing restructuring by striking a loss portfolio transfer deal with fellow Bermuda-based company Enstar Group. Maiden’s shares fell $1.12 to $2.41 on New York’s Nasdaq Stock Exchange after it announced a net loss of $308.8 million. The operating loss was $235.1 million, or $2.83 per share, compared to analysts’ consensus expectation of an 18 cents per share operating profit. Maiden’s combined ratio was 150.7 per cent, meaning that it paid out about $1.50 in claims and expenses for every $1 of premium it took in. Under the deal with Enstar, which specializes in acquiring and managing businesses and portfolios in run-off, Enstar will assume loss reserves of approximately $2.675 billion associated with Maiden Re’s quota share reinsurance contracts with AmTrust Financial Services. The retrocession will apply to losses arising and claims made on or prior to June 30, 2018; loss reserves assumed will be subject to adjustment for paid losses since such date. The transaction is subject to regulatory approvals and other closing conditions. In August, Maiden agreed to sell subsidiary Maiden Reinsurance North America to Enstar for $307.5 million. This year, Maiden has also sold its US casualty facultative reinsurance team to Sompo International and struck a renewal rights agreement with Transatlantic Re for net proceeds of $7.5 million. Lawrence Metz, Maiden’s chief executive officer, said: “While there is still work to do, we believe that much has been accomplished, and we remain committed to completing our strategic review process and to taking the actions necessary to further enhance value to all our shareholders.” Patrick Haveron, Maiden’s chief financial officer, said: “During the third quarter, we also took the opportunity to materially strengthen our carried loss reserves and position Maiden for profitable future results. Our announcement today with Enstar brings additional certainty and finality to the steps we have taken. Upon completion of all of the strategic transactions announced since August, Maiden’s capital position will be dramatically stronger. He added: “We anticipate an improved outlook for Maiden as 2018 heads to its final quarter and into 2019.”

2018. August 31. Maiden Holdings has sold its US reinsurance unit to a subsidiary of fellow Bermuda-based company Enstar Group. Maiden will receive net proceeds of $307.5 million for its Missouri-based subsidiary Maiden Reinsurance North America. Enstar will operate the business in run-off. On Wednesday, Maiden announced it had sold the business’s reinsurance renewal rights to Transatlantic Re, which was also taking on the unit’s underwriting team. “Today’s announcement of the sale of MRNA represents another step in our continuing strategic review. This transaction will broaden our ability to manage and allocate capital as we move forward, and will create value for our shareholders,” Lawrence Metz, Maiden’s chief executive officer designate, said. The transaction is expected to close in the fourth quarter of this year. Enstar will assume approximately $1.3 billion of net loss and loss adjustment expense reserves and unearned premium reserves from Maiden’s US Diversified business upon closing. As part of the transaction, an Enstar subsidiary will novate and assume certain reinsurance agreements from Maiden’s Bermuda reinsurer, including certain reinsurance agreements with MRNA. Patrick Haveron, Maiden’s chief financial officer and chief operating officer designate, said: “Today’s announcement along with our previously announced renewal rights transaction will further enhance our capital position. We are moving immediately to improve profitability by implementing additional operational efficiencies and expense reductions through the end of 2018, and we expect to provide further updates as we move forward.” Maiden’s shares were trading down 1.3 per cent at $3.90 at 2.51pm Bermuda time today, while Enstar’s shares were down 0.7 per cent at $212.25.

2018. August 30. Maiden Holdings Ltd has sold the renewal rights for its US treaty reinsurance business to American reinsurer Transatlantic Re. The Bermuda-based reinsurer said it was also in advanced talks to sell its US subsidiary Maiden Reinsurance North America. Maiden, whose head office is in Ideation House on Pitts Bay Road, has been undergoing a strategic review of operations in recent months. “The transaction, which has now closed, does not include any of the Bermuda underwriting elements of Maiden’s portfolio including its AmTrust Business or its International Insurance Services and Capital Solutions businesses in Europe, which forms the significant majority of Maiden’s existing business and will remain as part of its ongoing business,” the company stated. Maiden added that the sale of the renewal rights “begins the process of simplifying Maiden’s operations”. The company said anticipated restructuring and related expense reductions are expected to improve its business performance and profitability, as well as significantly reducing the amount of capital that Maiden needs for its operations. As part of the transaction, TransRe said it was taking on a team from Maiden Reinsurance North America, including Tom Highet, previously the company’s president, as well as underwriters, actuaries and claims personnel. The team will operate from new offices in Mt Laurel, New Jersey. Mr Highet, who was with Maiden Re and its predecessor GMAC Re for 30 years, has been appointed executive vice-president. TransRe said the renewal rights focused on regional property and casualty, accident and health, and personal auto insurers. Maiden added that it is “in advanced discussions regarding the sale of its wholly-owned subsidiary, Maiden Reinsurance North America, Inc to a third party”. The transaction would cover about $1.1 billion of loss and loss-adjustment expense reserves as of June 30, 2018. Earlier this month, the company’s shares fell more than 40 per cent in a single day, after Maiden announced an unexpected second-quarter loss and the retirement of its longstanding chief executive officer Art Raschbaum. Lawrence Metz, who succeeded Mr Raschbaum as CEO, said: “The announcement of this transaction represents an important step in Maiden’s continuing strategic review process and we believe this transaction will increase our financial flexibility, improve our operating efficiency and profitability and broaden our ability to allocate capital to future strategies, which in turn will create value for our shareholders. We are deeply grateful to the Maiden team for their continued efforts in this challenging environment and, prospectively, we will coordinate closely with clients to ensure a smooth transition.” Maiden’s shares closed at $3.95, down by ten cents or 2.5 per cent, in Nasdaq Stock Exchange trading today.

2018. March 1. Maiden Holdings’ chief executive officer acknowledged there is a risk of a ratings downgrade after the Bermuda-based reinsurer posted its fourth net loss in the last five quarters. But Art Raschbaum is hopeful that even if that occurred, clients would remain loyal. The company reported a fourth-quarter 2017 net loss of $133.6 million compared to a net loss of $74.7 million in the same period of 2016. Operating earnings per share for the quarter were negative $1.65, missing the 20 cents earnings expected by analysts tracked by Yahoo Finance. Maiden’s shares plunged 16.7 per cent to $6 yesterday after the results were released on Thursday evening. During yesterday’s conference call with analysts, Matt Carletti, from JMP Securities asked Mr Raschbaum about the likelihood of a downgrade. Maiden has an A (excellent) financial strength rating from AM Best. “Obviously, we’re in constant dialogue with all of our constituencies, rating agencies as well as our regulators. We’re not at liberty to communicate the details of our discussion. I’d say, with the kind of activity we’ve seen, certainly, there’s a risk of a downgrade. I think an important differentiator in our business model is — and we’ve done this since pre-Maiden days — we’ve collateralized the obligation for clients. And they’re collateralized to the full expected ultimate. And so repeatedly, we’ve had many customers that have remained very focused and committed to us because of that collateral. We see no change in that process.” The company had previously been able to grow with an A- rating, he added, though he conceded that a downgrade now would bring with it “noise” and challenges. The main driver of Maiden’s fourth-quarter loss was the performance of the AmTrust Reinsurance segment. Its combined ratio deteriorated to 131.1 per cent in the fourth quarter of 2017 from 108.1 per cent in the same period of 2016. The segment experienced adverse loss development of $139 million due primarily to workers’ compensation and general liability lines of business. Maiden has a multiyear quota share agreement with AmTrust Financial Services, which produced $1.8 billion of the reinsurers net premiums earned in 2016. During the conference call, Mr Raschbaum addressed speculation that Maiden’s major shareholders may have plans to take the company private. “As you know, AmTrust’s founding shareholders recently announced their plans to take the company private,” Mr Raschbaum told analysts. "While there has been speculation from some that Maiden could similarly be acquired by our founding shareholders, we have no such plans currently under way.” For the full year of 2017, Maiden reported a net loss of $199.1 million compared to a net income of $15.2 million in 2016. “While we are disappointed with our results for the fourth quarter, we believe we have taken significant steps to strengthen our reserves for losses which will help to accelerate a return to profitability in 2018 and beyond,” Mr Raschbaum said in a statement. “Our reserve actions in the fourth quarter reflect a more aggressive response to observed development in the quarter and throughout the year on the AmTrust Reinsurance segment as well as our Diversified segment.”

2017. November 8. Shares of Maiden Holdings plunged by more than 20 per cent in after-hours trading after the reinsurer reported a net loss of $63.6 million for the third quarter, driven primarily by a bolstering of loss reserves. The Bermuda-based firm’s net operating loss of 66 cents per share fell short of analysts’ expectations of earnings per share of 9 cents, sparking a sell-off after the results were announced. Maiden’s shares, which had closed regular trading at $8.40, tumbled 16.7 per cent to $7 after hours, having at one point fallen as much as 20.8 per cent. The reinsurer with offices on Front Street, Hamilton, estimated net catastrophe losses of $20 million in the third quarter, but it was the net adverse development on loss reserves of $77.7 million, which had the biggest impact on results. Maiden recorded $61.1 million of net adverse development in the AmTrust reinsurance segment, predominantly in its general liability line of business. In addition, the diversified reinsurance division had to bolster reserves by $7.9 million, related to prior-year losses, while the discontinued excess and surplus lines property business saw $8.7 million of adverse development, mainly emanating from increases in Superstorm Sandy loss reserves. That storm occurred five years ago. Art Raschbaum, Maiden’s chief executive officer, said: “Importantly, we believe that the actions we have taken to address historical loss reserve development while improving underlying business trends will benefit Maiden and our shareholders in the future.” He added the results, despite the losses, showed some favorable trends. “In the quarter we realized improved non-catastrophe operating performance in the US portion of our diversified reinsurance segment,” he said. “Across all of the diversified reinsurance segment we enjoyed strong premium growth. Investment earnings and invested assets continue to grow and operating cash flow was strong." During the quarter, Maiden repurchased just over two million common shares at an average price of $7.11 per share. Book value per share was $11.30 at the end of September, down 6.8 per cent over the first nine months of the year.

2017. August 9. Maiden Holdings Ltd made a loss of $22.4 million, or $0.26 per common share, for the second quarter. That compared to a $30.9 million profit for the same period of 2016. Art Raschbaum, chief executive officer of the Bermuda-based company, said: “The emergence of adverse loss development in both of our key operating segments has impacted our second quarter 2017 results. “We do not believe that the development observed in the quarter is analogous to the trend observed across our portfolio over recent quarters, which specifically emanated from elevated commercial auto liability frequency and severity from the 2011-2014 underwriting years, a phenomenon which has plagued many in the industry.” The net adverse development for the quarter in the AmTrust reinsurance segment was $29.4 million. Mr Raschbaum added: “While the AmTrust reinsurance segment adverse development is relatively modest in the context of the overall historical portfolio assumed, as we have committed to in the past, it is our practice to respond to confirmed adverse development promptly. In response to observed elevated claims activity which we noted in our first-quarter earnings call, Maiden’s audit activity has confirmed claims operational changes in AmTrust’s US small commercial lines business which are believed to have contributed to a portion of the increased emergence in related casualty lines. We have however increased our reserves in these lines in the quarter in response to elevated severity in specific jurisdictions.” There was also adverse development of $25.4 million in the company’s diversified reinsurance segment’s casualty facultative business. Mr Raschbaum said: “Despite the adverse development in the quarter, year-to-date treaty commercial auto which has been the source of significant development over many recent quarters, has been benign, giving us increasing comfort that we have addressed this issue.” He noted that most recent underwriting years continue to perform within expectations, adding: “We did benefit from strong investment income, up 14.7 per cent from the prior year period driven by increased investable assets. Absent adverse development, this will improve both return on equity and operating results in future quarters.” In the second quarter, gross premiums written increased 2.5 per cent to $705.2 million, while gross premiums written in the diversified reinsurance segment were down 14.6 per cent at $140.8 million. The combined ratio for the second quarter rose to 105.8 per cent, from 98.6 per cent a year ago. Book value per common share was $11.65, a decrease of 1.4 per cent compared to the year-end 2016. In June, Maiden redeemed its $100 million 8 per cent senior notes due 2042, and issued $150 million 6.7 per cent non-cumulative preference shares. Before the earnings report was released Maiden’s shares closed at $10.56 in New York, down 45 cents, or 4.09 per cent.

2017. February 28. Maiden Holdings Ltd made a net loss of $74.7 million in the fourth quarter of last year as the company had to bolster reserves for its commercial auto line of business. The Bermuda-based reinsurer said the $120.4 million charge included a provision for adverse development realized during the quarter, as well as “a more conservative view of the ultimate exposures on commercial auto liability through the portfolio”. Maiden, which has offices on Front Street, had announced the charge last week. The net operating loss of $69.7 million, or 81 cents per share, bettered the 98 cents per share loss consensus forecast of analysts tracked by Yahoo Finance. The combined ratio — reflecting the proportion of premium dollars spent on claims and expenses — was 117.4 per cent, compared to 99.9 per cent in the fourth quarter of 2015. The cost of deaths on US roads rocketed 12 per cent in 2016 to around $432 billion and there was a 6 per cent increase in road fatalities last year, on top of a 7 per cent jump in 2015. “Despite the significant challenges presented in the commercial auto business, we reported a modest profit for the year and have continued to grow our business and investible assets while strengthening investment income,” Art Raschbaum, Maiden’s chief executive officer, said. “We remain focused on improving the profitability of our business and believe the fourth quarter reserve charge will help us to stabilize underwriting performance as we enter 2017. Importantly, our 2016 underwriting year expected loss ratios reflect solid profitability. While the market remains competitive, we were able to expand our business in 2016 by leveraging our strong franchise and value-added products and services. We believe our prospects for continued disciplined growth are strong. Additionally, we are in an excellent position to improve our cost of capital, and will explore opportunities to refinance our existing indebtedness in 2017 at an improved rate.” Net income for the year was $15.2 million, or 19 cents per share, compared to $100.1 million, or $1.31 per share, in 2015. Gross premiums rose 6.3 per cent to $2.8 billion during the 12-month period, while the combined ratio for the year was 103.2 per cent, worsening from 99.3 per cent in 2015. Net investment income for the year was $145.9 million, up 11.3 per cent from the $131.1 million recorded in 2015. Book value per share at year end was $12.12 per share, up 3 per cent for the year. Maiden shares closed at $16.50 in Nasdaq Stock Exchange trading last night.

2017. February 16. Maiden Holdings Ltd shares plunged by nearly 10 per cent yesterday after the reinsurer said it was taking a $120 million charge to boost reserves in its commercial auto division. The Bermuda-based company, which has offices at 131 Front Street, is due to report fourth-quarter and full-year earnings on February 27. Despite the charge Maiden said in a statement that it expected to report “a modest level of operating and net income for the full year”. The company’s shares fell by $1.85, or 9.8 per cent, to close on $17 in New York. Art Raschbaum, Maiden’s chief executive officer, said: “For some time, Maiden has experienced adverse development across its historical commercial auto portfolio, primarily emanating from the 2011-2014 underwriting years. “Throughout the industry, commercial auto loss cost severity trends have been rising and we believe it is prudent to address this adverse trend by strengthening the company’s loss reserve position. We believe we have taken appropriate steps to respond to adverse development and believe this reserve strengthening will help to stabilize forward performance and profitability.” Maiden added that it would have generated profitable underwriting results for the year, absent the reserve strengthening measures. The company said it expected no change to be made to its quarterly dividend policy. According to company data, the commercial auto business generated 11 per cent of Maiden’s gross premiums in 2015.

2016. November 2. Maiden Holdings Ltd has reported net income for the third-quarter of $31.8 million. That is up on the $22.5 million recorded for the same period last year. Art Raschbaum, CEO of Maiden, said: “Maiden continued to deliver strong results with a year over year improvement in our combined ratio, double-digit operating return on common equity, increased investment income, continued book growth in book value and disciplined growth from virtually all business activities, despite an increasingly challenging operating environment with intensifying competition, as well as growing loss cost volatility.” He said that the boost came from both existing clients and new business won by the firm. Gross premiums written for the quarter went up 12.5 per cent to $706.9 million, compared to the $628.5 million recorded in the same period last year. Net investment income also went up 8.6 per cent to $35.7 million. The total net operating income also increased, up $4.4 million, to $30.2 million.

2019. October 23. Maiden Reinsurance Ltd plans to re-domesticate from Bermuda to the US, and it is aiming to complete the move around the start of the new year. The company has submitted filings to re-domesticate to Vermont. According to a statement issued by Bermuda-based holding company Maiden Holdings Ltd, it has been determined that re-domesticating its principal operating subsidiary Maiden Re to Vermont “will enable the company to better align its operations, capital and resources with the company’s liabilities, which originate mostly in the United States, resulting in a more efficient structure”. It said the proposed re-domestication, in combination with an extended series of actions previously taken and done in close consultation with the Bermuda Monetary Authority to de-risk the company’s balance sheet “will continue to strengthen the company’s capital position and solvency ratios”. When asked if there would be any change to staffing levels in Bermuda as a result of the proposed re-domestication, a spokesman said it would be premature to speculate on potential operational impacts until the process is complete. In addition, the company has applied to transfer the listing of its shares from the Nasdaq Global Select Market to the Nasdaq Capital Market. The shares will continue to trade under the symbol MHLD. In August, Maiden Holdings said it entered into a series of strategic transactions that had “materially improved its capital position”. Maiden Holdings Ltd, which has offices on Pitts Bay Road, was formed as a Bermudian-based holding company in 2007. Maiden Holdings other operations include Maiden Reinsurance North America Inc, and Maiden Global Holdings. The company has underwriting operations in Bermuda and the US, with production teams in other locations, including the UK and Germany.

Bermuda-based, subsidiaries of which offer workers’ compensation insurance in the US. Changed its name from Compensation Risk Managers. Majestic Insurance also provided workers’ comp coverage to employers in Arizona, Nevada, New Jersey and other states. During 2010 it wrote $69 million direct premiums in California.

A subsidiary of UK-based Mapely Ltd. In late 2002, the UK Inland Revenue sold Mapely 600 UK properties worth over 100 million pounds sterling, then leased them back. In 2016 England's Sunday Times newspaper revealed that UK Land Registry records seen by it show that one of Her Majesty's Revenue and Customs (HMRC) most prestigious offices in London (see above photo) is owned by this Bermuda-based company set up to legally avoid tax of £170m on the UK government deal referred to above. Custom House, an imposing neo-classical building on the Thames, is owned by Mapeley Steps. The grade I-listed building is among more than 490 UK government offices ultimately owned by companies based in tax havens.

2019. November 1. Markel Corp reported third-quarter earnings of $193.4 million as underwriting performance improved. The Glen Allen, Virginia-based company with re/insurance operations in Bermuda said it had net income of $13.95 per share. The results exceeded analysts’ expectations. The average estimate of four analysts surveyed by Zacks Investment Research was for earnings of $7.55 per share. The insurer posted revenue of $2.03 billion in the period. Its adjusted revenue was $2 billion, which met Wall Street forecasts. For the nine months ended September 30, operating revenues totaled $6.9 billion, up from $5.8 billion in the corresponding period of last year. The combined ratio — the proportion of premium income spent on claims and expenses — improved to 94 per cent for the third quarter of 2019 compared to 99 per cent for the third quarter of 2018. Markel shares have increased slightly more than 9 per cent since the beginning of the year. The stock has increased 11 per cent in the last 12 months. Thomas Gayner and Richard Whitt, co-chief executive officers, said: “Our operating results for the quarter continue to reflect profitable top line growth across the company. We produced a meaningful underwriting profit, despite catastrophes losses during the period, and we’re seeing excellent results from our Markel Ventures operations. Our investment portfolio continues to make meaningful contributions to both net income and comprehensive income, driven by favourable market conditions.”

2019. July 27. Markel is to set up a new retrocessional insurance-linked securities platform in Bermuda to replace Markel CatCo, which will go into run-off. The American parent company said the Markel Catco Investment Management will stop accepting new investments and the funds it oversees will be wound down over the next three years. The new operation intends to target 2020 renewal business. Markel Global Reinsurance executives Jed Rhoads and Andrew “Barney” Barnard will lead the new operation, Markel said. “Markel is tremendously optimistic about the future of the ILS market,” Richard Whitt, co-chief executive officer at Markel, said. "Over time we expect this new platform to broaden Markel’s capabilities and provide institutional investors access to further opportunities in insurance risk, complementing our existing Nephila and State National operations. The 2020 Retro Fund is expected to provide investors with access to property catastrophe retrocession exposure via a single-entry point and platform, and we expect it will additionally present a convenient and compelling offering to both our cedants and brokers.” The news follows a tumultuous period for Markel CatCo, which has seen the operation investigated over the recording of loss reserves by authorities in Bermuda and the US since late last year. Markel did not say whether the winding down of Markel CatCo was connected to the investigations. And in January, the company dismissed Tony Belisle, Markel CatCo’s chief executive officer, and Alissa Fredericks, CEO — Bermuda, over “violations by Mr Belisle and Ms Fredricks of Markel policies relating to an undisclosed personal relationship”. The fired executives then sued Markel, with Mr Belisle claiming unpaid bonuses of $65.9 million and Ms Fredericks claiming she was owed $7.4 million. Markel said this month that it had settled one of the cases and was in binding arbitration to resolve the other. CatCo set up as a collateralised reinsurance fund in 2010 and the company was acquired by Markel in 2015.

2017. November 28. Markel Catco Investment Management Ltd has raised $543 million of new capital from a share offering. The successful raise follows last month’s raising of $1.8 billion by the Bermudian-based company, which offers collateralized reinsurance products and invests in insurance-linked securities. Tony Belisle, chief executive of Markel Catco, said: “We are delighted with the tremendous support shown by existing and new investors for Markel Catco’s specialized ILS investment opportunity. “The fundraise will ensure the company continues to meet the growing demand from our buyers for our unique reinsurance protections.” The company was hit hard by catastrophes in the third quarter. Last month Markel Catco said its CatCo Reinsurance Opportunities Fund had implemented loss reserves for hurricanes Harvey, Maria and Irma amounting to 20 per cent of the fund’s net asset value. Large industry losses had also “resulted in increased pricing within the retrocessional reinsurance market and, in addition, a requirement by the company for new capital”, Markel Catco said on October 2.

2017. October 30. Bermuda-based Markel CatCo Investment Management Ltd has raised more than $1.8 billion for its private fund from existing and new investors — and next month it intends to raise more new capital. The company with a focus on collateralized reinsurance products was hit hard by catastrophes in the third quarter. Earlier this month, the company announced that its CatCo Reinsurance Opportunities Fund had implemented loss reserves for hurricanes Harvey, Maria and Irma amounting to 20 per cent of the fund’s net asset value. On October 2, CatCo said the hurricanes had “resulted in increased pricing within the retrocessional reinsurance market and, in addition, a requirement by the company for new capital”. And after its successful first wave of raising capital, it intends to publish a prospectus in early November with the aim of closing the fundraise, through a placing of new C shares, by the end of the month. “With over $1.8 billion already raised, this ensures that Markel CatCo can fund all of its January 1, 2018 reinsurance contract renewals as well as a portion of the increased buyer demand from its reinsurance clients,” the company said in a statement today. “The proceeds from the C shares will enable the fund to satisfy the additional buyer demand from existing and new reinsurance clients.” Tony Belisle, chief executive officer of Markel CatCo Investment Management Ltd, said: “The Markel CatCo team is extremely grateful for the tremendous support demonstrated by our investors and, equally importantly, by the buyers of our reinsurance protections and the loyalty they have shown towards our unique product offering. The ability to raise and deploy this significant amount of additional capital is testament to the Markel CatCo team focus on providing both exceptional, long term returns to our investors and, also, the highest levels of service to our reinsurance clients.”

2017. July 27. Financial holding company Markel has bought out a US insurer in a $919 million deal. Markel, based in the US but with this Bermuda subsidiary, is expected to take over State National in the cash transaction by the end of the year. Richard Whitt, Markel’s co-chief executive, said: “We are excited to be joining forces with State National — an industry leader with a talented management team that has delivered exceptional long-term results. “In addition, we are impressed by the cultural fit between our two organisations. Strategically, State National will help us to leverage our Insurtech and digital distribution initiatives, diversify our underwriting and fee based portfolios and revenue streams, and add to Markel’s third party capital capabilities. Combining Markel’s financial strength with State National’s unique business model and proven record of success, we are confident that all stakeholders will be well served moving forward.” State National, based in Texas, will continue under the same leadership and will operate as a separate business unit. Terry Ledbetter, State National’s chairman, said: “After careful and thorough analysis of a range of opportunities, our board of directors determined this transaction with Markel to be in the best interest of State National and our shareholders. We believe the transaction appropriately recognizes the value of State National’s business model, recent growth and future market opportunities as a leading specialty provider of property and casualty insurance services operating in two niche markets throughout the United States, and provides our shareholders with an immediate and attractive cash premium for their investment in State National. We believe this transaction with Markel is good for our employees and clients, as well as our shareholders. Markel recognizes our shared commitment to offering unique, high-quality solutions that simplify the complexities of insurance for clients nationwide. We have long respected Markel and are proud to partner with this distinguished company that has a strong reputation and proven track record of success in acquiring and partnering with insurance companies. This transaction is all about growth, not cost-cutting, and we believe that State National employees will benefit from being part of a larger, stronger, growth-oriented company with a more diversified platform. Our success is driven by the ongoing efforts of our talented employees and I thank them for their continued hard work and dedication. We look forward to working with Markel to quickly complete the transaction and are committed to ensuring a smooth transition.” The transaction is subject to the approval of a majority of State National shareholders, approvals by relevant state insurance regulators and other customary closing conditions. Members of the Ledbetter family have entered into a voting agreement with Markel in support of the merger. CF SNC Investors has entered into a separate similar voting agreement with Markel. The agreements mean around 37 per cent of State National’s common stock is committed to vote in favour of the transaction.

2015. September 10. Catco is to be acquired by US financial holding company Markel Corporation. Markel will acquire “substantially all of the assets of Catco”, according to a joint statement from the two companies. The deal is expected to close in the fourth quarter of this year, subject to conditions. Two years ago, Markel acquired Bermuda insurer Alterra Capital in a $3.1 billion deal. Financial details and terms relating to the Catco deal have not been disclosed. However, there will be no changes to the Catco team, which will continue operating in Bermuda under the new name of Markel Catco Investment Management, led by chief executive officer Tony Belisle. Catco has a different office to Markel, with the head offices of Markel Global Insurance and Markel Global Reinsurance Corporation at Markel House, at 2 Front Street. Markel Corporation has its headquarters in Virginia. Mr Belisle said: “We are excited to join forces with Markel, a leading global speciality insurer and reinsurer which operates with a strong commitment to its core values and distinguished corporate culture. We felt this partnership offered a rare opportunity for Catco to combine with a culturally similar organization which shares our results-oriented commitment to success and market leadership. We are confident that uniting the strength of the Markel brand and its global reach with Catco’s differentiated product innovation capabilities will serve to improve our value proposition for investors and cedants. Catco has grown significantly since its launch in 2010, and the agreement with Markel will allow the same management team to maintain its commitment to both client service and continual product innovation.” Catco manages about $2.7 billion of retrocession and traditional reinsurance portfolios. Markel primarily markets and underwrites specialty insurance products. It also has market venture investments in a number of companies, which has resulted in it sometimes being referred to as “baby-Berkshire”, in reference to Warren Buffett’s conglomerate Berkshire Hathaway. Commenting on the Catco deal, Markel’s president and co-chief operating officer, Richard Whitt, said: “We are very pleased for Tony Belisle and the entire Catco team to join Markel. The addition of Catco’s insurance-linked investment management capabilities alongside Markel’s traditional reinsurance capabilities makes for a powerful combination. While Markel has a long and successful track record in the insurance linked securities space, the addition of the Catco team takes our capabilities to an entirely new level. The current challenges in the reinsurance and retrocessional markets are well documented. Despite these short-term challenges, we believe that with innovative products and services the long-term future is bright.”

2020. January 15. Markel Corporation has appointed Bermudian Margot Green as head of Bermuda claims. She will manage the Bermuda professional liability and property claims teams, in addition to the casualty claims team that she currently manages. In addition, she will continue to act as complex claims counsel for the Bermuda casualty claims team. Previously, Ms Green served as director and senior counsel, complex claims, at Markel Bermuda and was responsible for managing the Bermuda casualty claims team. She joined Markel in 2016 as an executive claims examiner on the Bermuda casualty team. She has also held positions with the insurance and reinsurance group at Crowell & Moring LLP in Washington, DC, and worked as a summer intern in the general counsel and claims offices of Ace Bermuda. Mia Finsness, managing director, global casualty underwriting and claims, said: “We are delighted that Margot will be assuming responsibility for the entire Bermuda claims organisation. She has proven herself to be a true leader, both at Markel and within the Bermuda re/insurance industry. We are confident that the Markel Bermuda claims teams will thrive under her leadership and direction.” Ms Green was born and raised in Bermuda and attended Mount Saint Agnes Academy. She is a graduate of Wake Forest University and The George Washington University Law School.

2017. June 8. Markel is restructuring its insurance operations to combine two divisions into one. The company, which is based in the US, but which has offices on Front Street, said the new division, to be known as Markel Assurance, would be up and running by the start of next year. The company’s existing Wholesale and Global Insurance operations will combine under the new banner, to be led by Bryan Sanders, president of Markel Wholesale. Bermuda will host an underwriting team for the new division, as will Dublin and London. In the US, Markel Assurance will operate through a regional structure with ten offices in six regions serving all major insurance hubs. Markel Assurance said gross written premium of the new division was around $1.8 billion, coming from three product lines — casualty, professional liability, and property/marine. “This move combines two talented and successful divisions and aligns our structure more closely with both production partners and customers,” said Richard Whitt, the co-chief executive officer of Markel. “We are committed to innovation and to making it easier to do business with Markel — establishing this new division accomplishes both of those objectives.” Mr Sanders added: “We will have more resources, more products, and all of the long-term relationships that have brought us this far. Creating this new division will help Markel maintain its leadership position.”

2018. September 20. Marsh & McLennan Companies plans to cut its global workforce by as much as 5 per cent after it completes the planned $5.7 billion acquisition of Jardine Lloyd Thompson. The news came in a filing by MMC with the US Securities and Exchange Commission. The two companies, both of which have operations in Bermuda, announced agreement on the takeover deal on Tuesday. It is expected to close in the spring of 2019. MMC says there will be “duplication” of functions between the merging businesses and that it plans to achieve annual cost savings of about $250 million. Given that the two firms have a combined global workforce of around 75,000, as many as 3,750 jobs could be at risk. In Bermuda, both companies offer captive management services and act as re/insurance brokers and risk advisers. MMC’s business is based in the Power House on Par-la-Ville Road and JLT’s base is in Cedar House, on Cedar Avenue. In the SEC filing, MMC said that it had not finalized its plans for staffing yet. “MMC’s preliminary evaluation suggests that MMC is expected to achieve synergies of approximately $250 million within three years of completion of the acquisition, a substantial portion of which could come from headcount reductions in addition to savings in real estate, IT, outside services and other initiatives,” the filing states. “Based on this preliminary evaluation, MMC expects a potential headcount reduction of between 2 and 5 per cent of the total combined group workforce across all geographies, including in the UK, Continental Europe, Asia, North America, the Middle East, Latin America and the Pacific, and from a broad range of job categories, including functional support areas such as finance, human resources, IT, operations, legal and administrative support staff.” MMC has about 85 office locations around the world and JLT has 40. MMC intends to “to consolidate offices where feasible in order to significantly reduce rental and lease expenses and to enable colleagues to work more closely together”.

Canons Court, 22 Victoria Street, Hamilton HM 12. Marvell.com. The maker of chips for Apple Inc.'s iPod media player. Co-founder and former chief operating officer was Weili Dai, of  Los Altos Hills, California, founded the company in 1995 with husband Sehat Sutardja. Today, Marvell makes processors that run smartphones, has its US operating subsidiary in Santa Clara, California and operations worldwide with approximately 5,000 employees. It has international design centers located in the US, Europe, Israel, Singapore and China.

2017. November 21. LOS ANGELES (Bloomberg) — Marvell Technology Group Ltd, a microchip maker domiciled in Bermuda, has agreed to pay $6 billion to acquire Cavium. The buyer will pay $40 in cash plus 2.1757 Marvell common shares for each Cavium share, according to a statement yesterday. Marvell plans to use $1.75 billion in debt financing to fund the transaction. Cavium shares rose to a record yesterday, while Marvell also gained. The main business of Marvell, which is run from Santa Clara, California, is in chips that control hard disk drives, a market that’s no longer growing as new technology begins to take over data storage. Cavium, which is based in San Jose, California, makes networking processors and is one of several companies trying to use ARM Holdings technology to break into the server microprocessor market. It’s an ambitious move because Intel, the world’s largest chipmaker, dominates the sector with a 99 per cent share. The deal was expensive but necessary to help both companies compete with the giants of the semiconductor industry, including Intel, Qualcomm Inc and Broadcom Ltd, Kevin Cassidy, an analyst with Stifel Nicolaus & Co, said in a note. Cost savings could add 10 per cent to the combined company’s annual profit, he said. The acquisition of Cavium is the biggest deal for Marvell chief executive officer Matthew J. Murphy, who took the role last year after an accounting scandal forced the resignation of his predecessor. “This is an exciting combination of two very complementary companies that together equal more than the sum of their parts,” Murphy said in a statement.

2018. April 30. Government has signed a Memorandum of Understanding with this second fintech business as efforts to build the industry in Bermuda continue. David Burt, the Premier, announced this morning that an MOU had been signed with Medici Ventures with the intent to create jobs and educational opportunities for Bermudians. The MOU was signed by Patrick Byrne, the founder and CEO of Overstock.com, of which Medici Ventures is a subsidiary. The company was formed to incubate, launch and invest in blockchain investments. A spokesman said the MOU established that Medici Ventures would make Bermuda its “laboratory” for blockchain innovations coming out of its stable of a dozen blockchain firms. The MOU also promised at least 30 jobs in Bermuda over the next three years. The company will develop a security token trading platform in Bermuda and work with the Bermuda Government to develop and improve a legal and regulatory framework. Mr Burt said: “On behalf of the Government of Bermuda, I am extremely pleased to sign this MOU which demonstrates that global investors are taking note of what Bermuda is doing. We look forward to working with Medici to ensure that the commitments made in this MOU are realised. Bermuda is at the forefront of the fintech industry creating an environment in which Bermudian businesses can thrive, opportunities for Bermudians can be created and in which capable, qualified Bermudians can benefit from opportunities to train, work and succeed at every level.” The signing comes days after Government signed and MOU with the Binance Group, which was promised to create 30 jobs for Bermudians and a $10 million investment in training. The House of Assembly approved legislation to regulate Initial Coin Offerings on Friday, with legislation covering cryptocurrencies expected to be tabled soon.

2019. January 24. This company that lost millions in the failed Par-la-Ville hotel project has urged businesses to avoid the island in a message to the United States Consulate for Bermuda. A spokesman for Mexico Infrastructure Finance Ltd wrote to Constance Dierman, the US Consul General, urging her to warn other companies from “doing business with and in the jurisdiction”. The company said: “MIF has incurred a multimillion-dollar loss of principal, plus substantial litigation expenses, including those of the City of Hamilton, having done nothing other than provide, in good faith, financing to support a hospitality project fully endorsed by the CoH and Government of Bermuda. Although the CoH and PLV were undeniably responsible for releasing the MIF loan proceeds to their immediate theft, the CoH has unjustly succeeded in shifting the monetary loss consequences of those actions to MIF. While MIF will continue to seek justice, in addition to a lawsuit already in course in New York, we believe it is important that other potential investors in, and lenders to, Bermuda be aware of the above facts and actions by the CoH.” The message came after London’s Privy Council ruled against the company in a dispute over a loan guarantee issued by the City of Hamilton. The municipality has signed an agreement in 2014 to guarantee an $18 million bridging loan from the company to Par-la-Ville Hotel and Residences Ltd. When PLV defaulted on the loan, the city initially accepted a consent judgment and began to arrange financing. But the municipality later appealed the judgment on the basis that it was not empowered to issue the guarantee as it was not for a “municipal purpose”.

2019. January 24. Criminal charges were dismissed yesterday against former Mayor of Hamilton Graeme Outerbridge, city secretary Ed Benevides, developer Michael MacLean and his wife, Yasmin MacLean. The four had been charged with offences related to a failed hotel development on Hamilton’s Par-la-Ville car park. Puisne Judge Charles-Etta Simmons ruled yesterday that there was not enough evidence against any of the four to proceed to trial. She dismissed all of the charges against the group and released them. Mexico Infrastructure Finance, the complainant in the case, said legal actions over the dispute continue in New York. MIF immediately fired off a letter to the US Consul General urging that business contacts in Bermuda be discouraged. Mr Outerbridge and Mr Benevides had been accused of agreeing corruptly to obtain property for the benefit of the MacLeans by authoring the release of $15,449,858 from an escrow account at the Bank of New York. Mr MacLean, Mr Outerbridge and Mr Benevides were also accused of dishonestly obtaining the money in the account, belonging to Mexico Infrastructure Finance. The MacLeans were further charged with stealing $13,749,858 belonging to MIF and using stolen money knowing that it “in whole or in part directly or indirectly” was the proceeds of criminal conduct. Before the group were required to enter pleas to the charges, they filed applications on the grounds that there was insufficient evidence for the matter to go before a jury. Mrs Justice Simmons delivered a decision in Supreme Court yesterday, in which she said there was a “paucity of evidence” against Mrs MacLean. She told the court: “It seems to have been a presumption by the prosecution that because her name is on the account, and because her husband was involved in business arrangements, that she committed the offences with which she has been charged. “No reasonable jury could make a finding of guilty in the circumstances.” Mrs Justice Simmons said Charles Richardson, who represented the MacLeans, argued there was no evidence they acted dishonestly. She said: “He contends that lawyers for the relevant parties were advising them, that the principal of MIF himself had legal advisers, that three opinions from eminent law firms were required and were received.” Mrs Justice Simmons agreed there was insufficient evidence of dishonesty, therefore the allegations of corruption against Mr Outerbridge or Mr Benevides could not be stood up. She similarly dismissed the charges of money laundering and theft against both MacLeans. Mr Outerbridge and the MacLeans declined to comment on the decision yesterday, while Mr Benevides could not be reached yesterday Mr Benevides has been on administrative leave from the City of Hamilton since he was charged in May. The Royal Gazette asked mayor Charles Gosling for comment about the ruling and Mr Benevides’s status, but did not receive a response. Larry Mussenden, the Director of Public Prosecutions, did not respond when asked about the possibility of an appeal. After yesterday’s ruling, an MIF spokesman said: “Whether the actions are deemed criminal or not in Bermuda does not change the fact that they occurred and were extremely damaging to MIF.” All of the charges related to a 2014 bridging loan from MIF to Par-la-Ville Hotel and Residences, which was guaranteed by the City of Hamilton. As part of the agreement, $18 million was placed in an escrow account at The Bank of New York Mellon. The sum was released to PLV in October 2014 after PLV entered into a financial agreement with Gibraltar-based Argyle Limited. MIF has claimed the agreement was not a permanent loan funding agreement as required, but instead a “Trade and Profit Share Agreement”. London’s High Court heard in 2017 that PLV transferred $12.5 million through a trust to Argyle UAE Ltd, run by businessman Robert McKellar. It is alleged Mr McKellar used the money to buy a luxury Aston Martin car, an engagement ring and two countryside properties in the south of England. The developer defaulted on the loan in December 2014 sparking a series of legal actions in Bermuda and elsewhere. MIF launched legal action against the City of Hamilton and The Bank of New York Mellon in the Supreme Court of New York alleging the money was withdrawn through “fraudulent and negligent misrepresentations”. Fidelity National Title Insurance Company has filed a writ in the Supreme Court against Bermuda law firm Trott & Duncan claiming that it became involved in the failed hotel project because of advice it was given by the firm. Delroy Duncan, partner at Trott & Duncan, said the proceedings were “without merit” and would be “contested vigorously”.

2019. January 22. The City of Hamilton dodged a $30 million bullet after London’s Privy Council found in its favour in a dispute over a guarantee for a failed hotel project, the mayor said yesterday. The Corporation of Hamilton had guaranteed an $18 million bridging loan, which defaulted, between Mexico Infrastructure Finance and Par-la-Ville Hotel and Residences Ltd. However, Lady Arden, in a majority decision released yesterday, ruled that the project did not have a “municipal purpose” — which meant the corporation did not have the power to give the guarantee, which voided it. Charles Gosling, the Mayor of Hamilton, said he was pleased by the ruling. He added: “If we had not challenged the guarantee, the city ratepayer and anyone using city services would have had to shoulder, in large part, the funding for the financing of the debt, which, with financial and other charges, could conceivably have totaled close to $30 million.” Lady Arden, in a decision backed by Lord Reed and Lord Briggs, said it was clear the purpose of the guarantee was to help the developer obtain funding. She added: “It is no part of the corporation’s functions to act as banker to a developer. The hotel complex did not provide any service or facility for inhabitants, except possibly for the conferencing facilities, but it has not been suggested that the conferencing facilities alone, doubtless a relatively small part of the total complex, could make the purpose municipal. The guarantee was not capable of being brought within the corporation’s powers by reference to a wider motivation and desire on the corporation’s part generally to promote Hamilton’s economic development.” Lord Sumption wrote a dissenting opinion, supported by Lord David Lloyd-Jones, that argued the Corporation did have the power to guarantee the bridging loan. He said: “‘Municipal purposes’ are purposes calculated to benefit the current and future residents, permanent or temporary, of Hamilton in their capacity as such. That is the relevant limitation. I can see no justification either in principle or in the language of the provision for distinguishing between benefits consisting in the direct provision of services or facilities to residents, and expenditure on the promotion of the city’s economic development which benefits the residents less directly.” Lord Sumption wrote that the city could invest in sports or entertainment facilities, even if they would be mostly used by non-residents. He said: “It would be artificial to say that these purposes, which indirectly serve the economic interests of the city and its inhabitants, are not municipal purposes. These examples, and one could give many others, illustrate the technical, functionally irrelevant and barely workable distinctions which it is necessary to make if the test favored by the majority be correct.” The Corporation of Hamilton backed an $18 million bridging loan from MIF to Par-la-Ville Hotel and Residences Ltd in 2014 and put up the city’s Par-la-Ville car park as collateral. The guarantee was intended to help the development of a $350 million luxury hotel, to have been built on the site of the car park. But the developer defaulted on the loan and a consent ruling was made by the Supreme Court in May 2015 against the corporation for the full amount plus interest. The city later appealed on the ground that it never had the legal power to make the guarantee, which meant the agreement was null and void. The Supreme Court found in favour of the municipality in 2016 and the decision was later upheld in the Court of Appeal. Mr Gosling said the ruling removed a “potential commitment” from the city’s books, but that the prolonged legal battle gave the city time to tackle a decline in revenues. He added: “We will carry on with that initiative. We still see street parking revenue continuing to fall, even with a reinvigorated collection of parking fines.” Mr Gosling said: “This revenue recovery has greatly lessened the hindering impact of a repayment schedule, but we will continue on that front as well as other issues such as the installation of solar panels where we can promise full power usage for such everyday energy gobbling utilities as our sewerage pumps.” He added that the municipality also wanted to improve sewage treatment in a bid to cut the risk of “grease balls” off South Shore. He said: “Initial studies have been very positive. If our results are reaffirmed, this multiyear project could be started within months — as long as we remember anyone can borrow money. It is the paying back that is the challenge.”

2017. May 15. Finance firm Mexico Infrastructure Limited has failed in its bid to overturn a court ruling that removed responsibility for repaying an $18 million loan from the Corporation of Hamilton. Last November, Supreme Court Judge Stephen Hellman ruled that the Corporation had no power to guarantee the loan from MIF to build a hotel on the Par-la-Ville car park. The judgment prompted an appeal by MIF who insisted the Corporation of Hamilton should be responsible for repaying this loan because it “unilaterally signed off on releasing the monies we lent to the hotel project”. The Court of Appeal handed down its judgment dismissing the appeal by MIF on Friday morning. Its ruling stated: “In the circumstances I would dismiss the appeal and uphold the learned judge’s conclusion that, firstly, in providing the guarantee acted ultra vires and the Corporation’s application to set aside the Consent Order was not an abuse of process. Accordingly, I would agree with the judge’s order than the consent order should be set aside.” Mayor of Hamilton Charles Gosling, commenting after the ruling, said: “In early May 2015, the morning following my election as Mayor, along with newly elected and returning council members, we were summoned to a meeting with those familiar with the MIF guarantee case before the courts. We were unequivocally told that there was no defence and that the new Corporation of Hamilton team had no recourse but to accept the fact that ‘we’ were liable for an $18 million guarantee given to MIF plus any arising interest. A couple of years later I am happy that two courts have decided otherwise. Without having a consistent revenue stream, stronger than what we had in 2015, any other ultimate ruling would have devastated the Corporation of Hamilton. The $18 million, once paid back in full, would have been a sum closer to $30 million. That is the number I consider we have saved the rate payers (as the Corporation is simply the institution that acts on their behalf) and those who use our city and its services. In the meantime we are still actively trying to regain lost parking revenue and to be in a position to reinvest in vital city capital projects. We have a commitment from Government to support us in this regard as they are fully aware of the implications of further delay. We are pleased that a Hamilton Parking Ordinance 2017 is to be presented to Parliament in this sitting and the enactment of the Traffic Offences Procedure Amendment and Validation Act 2015 within the next couple of weeks.” It was in July 2014 that the Corporation agreed to guarantee a bridging loan of $18 million made by MIF to Par-la-Ville Hotel and Residences Ltd. On December 31 that year, PLV defaulted on the loan and MIF took the Corporation to court, in its capacity as guarantor, for the outstanding balance of $18 million plus interest. The Corporation initially concluded it did not have a defence to the claim and a Consent Ruling was made by the court in May 2015 against the Corporation for the full amount. However, the City launched a fresh legal challenge in June to set aside the Consent Order on the basis it had no power to make the original guarantee and therefore it should be null and void. In his ruling, Mr Justice Hellman agreed that the Corporation had acted “ultra vires” in providing the guarantee and set aside the Consent Order. “I have every sympathy with MIF given the position in which it now finds itself,” Mr Justice Hellman said. “Nonetheless, I would not go so far as to say that the Corporation’s behaviour was so unreasonable as to render the application to set aside the Consent Order abusive. When considering the matter in the round, in my judgment the most important contextual feature is that it is in principle undesirable for the court to enforce a guarantee which is in law a nullity. This outweighs the various contextual features pointing in the other direction, including the serious prejudice to MIF which may be caused by not enforcing the guarantee.” Mr Justice Hellman noted in his ruling that there might be other ways for MIF to pursue the $18 million. “This judgment does not determine that MIF cannot recover the amount of the loan monies from the Corporation: merely that it cannot do so by enforcing an ultra vires guarantee,” he said. Mr Gosling said the retrieved revenue would “enable us to work on such projects as taking further significant steps in improving the treatment of our sewerage output from the city and surrounding areas.  There are a number of other capital projects necessitating corrective maintenance or further development. This could be the first time in a number of years where we get to stand up on two feet and get things done, rather than being hobbled and looking at what has to be put off for another year. We did not enter into this action gladly. The guarantee was the wrong commitment made at the wrong time supporting the wrong developer. All parties involved in seeking the guarantee were aware of the ultra vires concern, everyone believed the issue had been corrected through legislation. No one took the effort to see if it had indeed been ‘fixed’. It had not. If we had not fought this issue, it would have cost every Bermudian in one way or the other. We did not think it fair to accept what was, because of the ultra vires, an agreement voided from the start. It was not through the fault of anyone besides that of the mayor and certain members of the council, an elected group who took it upon themselves to ignore their fiduciary duty and play outside their legislated remit with somebody else’s money. Taking this legal action was the best means to protect the Hamilton community from what was a horrible, ill-considered undertaking. Court actions in the UK continue the effort to recover the monies inexplicably released to a Gibraltar-based company. While this action is less our battle now, we invested in the outcome when no one else was interested in seeking recovery. When a group of us sought election, John Harvey, Dennis Tucker, Nicholas Swan, Larry Scott, Henry Ming, Carleton Johnson and myself, we made the commitment to restore good governance and bring the ‘best’ back to the city. With the able representation of Michael Beloff QC, Ronnie Myers, and Mark Diel, we are living up to our commitment.”

2016. January 13. This firm has threatened to start selling off Corporation of Hamilton land if it does not receive the $18 million it is owed over the failed Par-la-Ville hotel project by the end of Friday. Mexico Infrastructure Finance’s legal team has told the corporation and the Bermuda Government it has no choice but to sell Hamilton Fire Station, the Chamber of Commerce building and the Custom House if the debt is not settled. In a letter seen by The Royal Gazette, the firm’s legal team expresses extreme disappointment at the conduct of the city’s administration for “failing to engage in any constructive dialogue”. MIF also accuses the corporation of going against the Supreme Court judgment that entitles it to an extra $800,000, on top of the $18 million, in receivership revenue and expenses over the failed hotel deal. Last night, Hamilton mayor Charles Gosling confirmed discussions between the two sides were continuing and the corporation had offered “every reassurance” that it was making “every effort” to settle the $18 million judgment. Mr Gosling pointed to recent legislation increasing the amount the corporation could borrow from $20 million to $30 million. He told this newspaper: “The corporation has also kept MIF abreast as best as possible in relation to its discussions with the lending institution for the securing of the funds as well as the ministry in relation to amending various legislation that would permit the corporation to borrow the necessary funds — while permitting them to continue with the day-to-day operations. “The corporation is confident that they will be in a position very shortly to pay all funds owed to MIF as they are fully aware of their commitment under the court judgment.” Mr Gosling’s pledge was endorsed by Michael Fahy, the Minister of Home Affairs, who said he remained confident in the mayor’s ability to see the matter resolved. Last week, senator Fahy told this newspaper the corporation could reach an agreement within days to satisfy its debt over the matter. Yesterday, he stated: “The ministry has separately kept MIF’s lawyers advised of efforts being made by the corporation to satisfy its obligations and more recently I commented publicly as to those efforts.” However, in its letter to the corporation and Government at the end of last week, MIF maintained it would take steps to execute the judgment “without further notice” if it did not receive the money owed on or before the close of business on Friday. “In light of these developments you have left our client with no other option but to proceed to execution which will include the sale of your client’s properties including Hamilton Fire Station, the Chamber of Commerce building, and the Custom House, as well as the garnishment of its income,” the letter states. “In an effort to provide your client with one last opportunity to meet its obligation, our client will hold off taking such action until close of business on January 15. Payment of the judgment of $18 million together with accrued judgment interest and net of receivership revenues and expenses of $817,935, as of January 15, must be received by our client, otherwise steps to execute against the judgment will commence without further notice.” On July 9, 2014, developer Par-la-Ville Hotel & Residences Ltd entered into a credit agreement with MIF to borrow $18 million for a proposed hotel development in Hamilton. On the same date, the Corporation entered into a guarantee of the loan and, as security for that guarantee, it provided MIF with a first mortgage over the Par-la-Ville parking lot. That loan was later recalled, leaving the corporation liable for the $18 million owed to MIF with interest of about $3,450 a day. The letter from MIF’s legal team further states: “Our client is extremely disappointed that your client has declined to engage in any constructive dialogue in connection with the repayment of our client’s $18 million judgment, together with accrued judgment interest net of receivership revenues and expenses, which stands at $769,606 for a total obligation of $18,769,606 as of January 1, 2016. No sensible timeframe has been provided, this despite the fact that your client promised to repay our client either at the end of 2015 or during the first week of January. Further, our client is deeply disappointed to now learn that your client is not intending repaying the judgment interest to which our client is legally entitled. It has been clearly agreed that if our client would refrain from commencing execution proceedings on its judgment, that the entirety of our client’s judgment would be repaid including the 7 per cent judgment interest according to law.”

Clarendon House, Hamilton HM 11. Derivatives broker. USA head office is the largest brokerage of exchange-traded futures contracts. Swift Code MFGLBMH1

2017. October 18. THE ROYAL GAZETTE investigates how a potential multimillion-dollar deal for a cashless gaming system could prove “problematic” for the Bermuda Government Gaming regulators fear that a multimillion-dollar casinos deal involving the Government is still on the table, despite concerns that it could damage the island’s financial reputation. Local company MM&I Holdings stands to potentially net tens of millions of dollars a year if it is given the contract to provide a cashless gaming network management system for any casinos that open on the island. But the Bermuda Casino Gaming Commission has warned that individuals associated with the company’s partner firm, Florida-based Banyan Gaming, have previously surrendered their gaming licences in two major gambling jurisdictions in the United States and this could be “problematic” in relation to them being licensed in the Bermuda market. In addition, after checking references provided by the two companies, the commission questioned why those referees seemed “unwilling to endorse” them. Disclosures made under the Public Access to Information Act reveal that Deborah Blakeney, the commission’s lawyer, raised the issues in an e-mail to MM&I earlier this year. She wrote: “It is the commission’s goal to ensure that the highest standards of suitability will be employed in allowing operators to enter the Bermuda integrated resort market. To do anything less not only jeopardizes the ability of the industry to secure a correspondent banking relationship, but can also damage the reputational brand of the island.” MM&I is owned by Bermudians John Tartaglia and Michael Moniz. As of July 2016, MM&I was represented by Mark Pettingill’s law firm and the company reached its agreement with the Government when Mr Pettingill and his business partner, the late Shawn Crockwell, were in Cabinet. Mr Crockwell, in a Cabinet memorandum seen by The Royal Gazette, told his colleagues it was “imperative” to proceed with the agreement with MM&I since “no other local entity” could provide the same networking system. The agreement itself, obtained through public access to information, was non-binding, conditional upon the legalisation of casino-style gaming and was signed by Mr Crockwell as tourism minister and witnessed by Mr Pettingill, then the Attorney-General, on December 3, 2013, a year before casino gaming was given the green light by Parliament. It proposed a ten-year contract for MM&I, with the option to renew for another ten years, giving the company 40 per cent of Bermuda’s gross gaming revenue from electronic gaming devices — slot machines and electronic table games — and an 8 per cent transaction fee on the purchase of chips for use at dealer-operated tables. With Bermuda’s annual revenue from casinos projected to be between $84 million and $146 million, according a 2010 government-commissioned report, and electronic gaming probably accounting for about three quarters of that, the rewards for MM&I and Banyan were likely to be substantial. At about the time the agreement was signed, at the request of Mr Crockwell, MM&I gave a $30,000 donation towards a marketing campaign aimed at persuading Bermudians to vote in favour of casino gaming in a planned referendum on the issue. The One Bermuda Alliance government decided to break its promise to hold that referendum just ten days after the MM&I agreement was signed. Mr Crockwell later tabled the Casino Gaming Act, which passed in Parliament in December 2014, paving the way for a casino industry in Bermuda. Mr Crockwell said the introduction of casinos would significantly enhance Bermuda’s tourism product and the referendum was ditched “for the better good”. Although MM&I’s agreement with the OBA government was terminated by Michael Fahy, who replaced Mr Crockwell as tourism minister after the latter quit Cabinet, gaming commission executives are querying whether it is still under consideration by the new Progressive Labour Party administration. The PLP, when in Opposition, invited two representatives of Banyan to sit as panellists at a forum it held on “safe and responsible” gambling on May 3 this year. At that meeting at Elbow Beach Bermuda Resort & Spa, Banyan president Jason Seelig outlined the benefits of a cashless gaming system and suggested that it be mandated by law. He was backed by Australian attorney Tibor Vertes, another panelist and client of Mr Crockwell and Mr Pettingill’s law firm. Just the day before, according to the records disclosed under Pati, the gaming commission’s lawyer had written to MM&I with questions about a firm that Mr Seelig previously ran with his father, Mac Seelig, and its “history of regulatory difficulties in markets” in which it was licensed. That history was a concern, according to the commission’s lawyer, Deborah Blakeney, because any sound anti-money laundering regime requires thorough background checks on operators, and banks could be deterred from dealing with the proceeds of the island’s casinos. Ms Blakeney wrote on May 2: “I raise these two issues because in the commission’s dealing with the correspondent banks for the island, and in dealing with the mandates of the Financial Action Task Force, a keystone condition concerns the suitability of the operator and all associates thereof. “The fact that it appears that this operator is considered unsuitable for licensing in at least two major US jurisdictions appears problematic. If I am missing something here, I would appreciate your guidance.” Public records show that the predecessor company, AC Coin & Slot, voluntarily surrendered its licence in New Jersey after the company was wound down in July 2013. In doing so, it became ineligible to apply again for a licence for five years. In the same month in Pennsylvania, AC Coin & Slot withdrew “with prejudice” its application for a licence. Such withdrawals can result in a five-year period of ineligibility to apply for a licence, in certain circumstances. Ms Blakeney referred to a list of references provided to the Government by MM&I and Banyan. “You are obviously not aware that my executive director, Richard Schuetz, knows many of these individuals and he was able to make inquiries,” she wrote. “The written and verbal responses from these individuals was generally less than glowing and the commission is puzzled as to why such individuals would be included as references for your company.” Ms Blakeney added: “We would ... appreciate your explanations as to why your listed references seem unwilling to endorse you.” Commission executive director Mr Schuetz reiterated the commission’s concerns in an e-mail to Ms Blakeney on August 2, pointing out that MM&I had not responded to her questions. He said since her letter was sent, Banyan had removed the names of Jason Seelig and Mac Seelig from its website. “This may all result from the fact that Jason and Mac are no longer associated with Banyan,” he wrote. “That would be a most interesting coincidence.” Mr Schuetz also considered the possibility that Banyan was distancing itself from those two individuals in order to pursue a licence in Bermuda without any legacy licensing issues or to position itself to argue that past concerns were no longer relevant. “This is particularly disconcerting if their plan of entry is by way of legislative mandate,” wrote Mr Schuetz. “I believe that certain people on this island believe that legislative mandate is worth $40 million per year for ten years. If, in fact, Mac and Jason are no longer listed on the Banyan website to create the impression that our past licensing concerns are no longer relevant, then I believe it is safe to conclude that the legislative mandate option is still being considered...” Mr Schuetz, who resigned from the commission on the day of the General Election and is serving out his notice period, has been criticized by Mr Crockwell and Mr Pettingill, as well as by Mr Vertes and social development and sports minister Zane DeSilva, a friend and sometime legal client of Mr Pettingill. Mr Vertes is being sued by Mr Schuetz for defamation. The Royal Gazette asked new tourism minister Jamahl Simmons if he was aware of the December 3, 2013 agreement with MM&I and whether the Government was still in talks with MM&I/Banyan or any other company about a casino gaming system for Bermuda. Mr Simmons replied: “As the ministry responsible for gaming, the main priority is ensuring that our gaming regulations are in place to assist with passing the current global review process, protecting our reputation as a jurisdiction and ensuring a clean gaming industry that benefits Bermudians first. Matters related to gaming systems should be addressed by the gaming commission.” There was no response by press time to a request for the minister to clarify what he meant by the “current global review process”. Digital Gaming Corporation USA acquired Jason Seelig’s 50 per cent share in Banyan in July. Jason Seelig now lists himself on LinkedIn as an executive vice-president at DGC. Mac Seelig’s profile on LinkedIn refers to him as a senior business analyst at Banyan. Keith Furlong, from DGC, told this newspaper: “Banyan Gaming LLC was established in January 2015 with Jason Seelig as a 50 per cent owner of the entity. “On or around July 2017, Seelig’s interest in Banyan Gaming was acquired by Digital Gaming Corporation USA. Seelig is no longer a shareholder of Banyan Gaming or Digital Gaming Corporation USA. The company does not wish to comment further.” Company filings in Florida from August show that Mr Furlong replaced Mr Seelig as Banyan’s manager. Mr Pettingill, the lone respondent to The Royal Gazette’s request for comment yesterday, has promised to speak today after consulting his clients.

A tax resident in Bermuda, an Irish-incorporated company with an address on Lower Hatch Street, Dublin, made a profit of €2.5 million in 2012 but paid no tax.  The Irish Times said : "The firm made a profit of €3.69 million in 2011, when it again paid no tax. It is exempt from all forms of taxation including income, capital gains and withholding taxes as it is tax resident in Bermuda. The firm has no employees and its three directors have addresses in Bermuda.” The report added the firm’s balance sheet shows that at the end of August 2012 it had financial assets of €50.8 million. Accumulated profits at that stage were €53.3 million and shareholders’ funds were €103 million. The firm is owned by a Monsanto company based in Switzerland, and is ultimately owned by Monsanto of St Louis, Missouri, US. The agricultural product company Monsanto produces genetically engineered seeds used by farmers for their pest resistance and ability to produce bigger crops. The crops have drawn criticism from organic food advocates who say they are harmful to people and the environment. But Monsanto has maintained that its seeds improve agriculture by helping farmers produce more from their land while conserving resources such as water and energy.

American corporation, Virginia-based, with a Bermuda shell company since April 2005. Won a multi-million-dollar US government contract to train police officers in Iraq. Was accused in April 2008 of using its Bermuda shell company to shield itself from US taxes. The Boston Globe reported that the Bermuda office appeared to have no staff, telephone number, or website. Said by it to be one of the offshore entities to avoid US taxes, even as they profit from lucrative federal contracts.

2018. January 8. MS Amlin has set up a new Bermuda-domiciled sidecar with more than $60 million of capital backing. The global re/insurer with offices in Bermuda, the UK and continental Europe, said the new special purpose insurer, Viribus Re Ltd, would provide collateralized capacity support for MS Amlin Syndicate 2001’s global reinsurance portfolio in 2018. Viribus Re Ltd has entered into a quota share agreement with MS Amlin, from the start of this year, under which it will reinsure a share of MS Amlin’s worldwide property catastrophe excess of loss portfolio. MS Amlin said capital had been committed by a number of third-party investors, including MS Amlin, which has committed $5 million. James Few, global managing director of reinsurance at MS Amlin, said: “This is an important long-term strategic initiative for MS Amlin as we continue to seek ways to build capacity and relationships with capital market partners, whilst providing us with greater scope and flexibility to support the evolving needs of our clients. We are delighted to have secured funding for Viribus Re Ltd from a range of new partners whom we look forward to working with closely in the future.”

2019. October 15. A Bermuda-based group of companies could play a pivotal role in the proposed settlement of opioid legislation in the United States involving OxyContin maker Purdue Pharma LP and its owners, the Sackler family. The outline of a proposed settlement that Purdue values at between $10 billion and $12 billion was filed in the US Bankruptcy Court in White Plains, NY last Tuesday. On Friday, US Bankruptcy Judge Robert Drain ordered a pause to all litigation involving Purdue until November 6, giving the bankrupt drug maker time to conclude a deal with plaintiffs. The proposed settlement aims to resolve more than 2,600 lawsuits by states, local governments and other plaintiffs against Purdue and its Sackler family owners. Under the agreement, the Sackler family would give up control of Purdue, turning the company over to an entity that would run the company and use its profits for the public good. The money for the proposed settlement is to come jointly from Purdue, and from the Sackler family. In Bermuda, the Mundipharma group of companies, owned by members of the Sackler family, have offices on Par-la-Ville Road in Hamilton. Top US insurance litigators Dick Geddes and Christopher Carroll, of international law firm Kennedys, appeared at the Hot Topics forum organised by the Bermuda office of Kennedys on Thursday. Mr Geddes is a partner in the firm’s Chicago office, while Mr Carroll, also a partner, is based in New York. Together, they gave a presentation entitled “Opioid Crisis: Beginning of the End or End of the Beginning”? Afterwards, the two visiting lawyers agreed that the Mundipharma companies may have a part to play in the proposed settlement. Mr Geddes said: “The proposed settlement involves numbers that Purdue is casting as $10 billion to $12 billion. Ten billion will theoretically come from the continued sale of Purdue’s products under the newly-structured public benefit corporation.” He added: “The other chunk, about $3 billion, theoretically will come from the family that owns 100 per cent of the assets of the Purdue companies, and that is the Sacklers. The question is where that money will come from.” In filings with the US Court, Mr Geddes said, a company is identified as a non-US pharmaceutical company owned by the Sacklers. Mr Geddes said: “That is Mundipharma. It’s very possible that Mundipharma could play a role in the settlement.”

2018. May 15. A drug manufacturer has come under fire in Britain for allegedly diverting $1.35 billion through Bermuda to avoid taxes. A report in London’s Evening Standard said pharmaceutical firm Napp has funneled cash through its Bermuda-based Mundipharma offices for more than 25 years. Napp, which manufactures painkiller OxyContin among other drugs, and Mundipharma are controlled by the billionaire Sackler family. The UK’s NHS Digital, which provides data to the National Health Service, said Sackler drugs make up 68 per cent of the volume of the oxycodone market in England and 29 per cent of the entire $356 million opioid market. The newspaper report, published last week, said the company manufactured drugs in Cambridge, England, and has paid taxes on drugs sold to the NHS. The report added sales to other parts of the world were routed through Mundipharma’s office on Par-la-Ville Road in Hamilton. The story said: “This would have allowed profit to be taken on the island nation, where no tax is payable. According to our sources, Mundipharma bought the drugs from the UK at one price and sold them to Mundipharma entities for a lot more — keeping the profit made in Bermuda. However, the products were shipped directly from the UK to the country where they were sold and did not go anywhere near Bermuda.” Napp’s turnover for international sales totaled $182 million in 2015. The report said: “Over 25 years, our sources said, the amount of profits diverted to Bermuda from Mundipharma Europe and Australasia was well over £1 billion. If the 2015 profit had been taxed in the UK, where the drugs are manufactured, it would have attracted corporation tax of 20 per cent, which equates to £30 million.” Over the 25 years the scheme has operated, this may add up to the avoidance of hundreds of millions of pounds in corporation tax. Bermuda’s role was reduced in 2015 due to changes in UK law, with profits being repatriated through the UK. The report quoted a tax expert who said the process used by Napp was not illegal or considered tax evasion “provided the transfer pricing arrangements with Bermuda could be commercially justified”. The unidentified expert said: “One way to add value is for the offshore company to hold the intellectual property and charge a fee for this, but in this case it appears the IP for OxyContin is held by Napp in the UK, and their larger trademark portfolio is held by Mundipharma AG in Switzerland. So it is hard to see, at least on the facts supplied, what activity in Bermuda added the value to justify the higher pricing.” The expert added that it was possible that the company entered into an advance pricing agreement with HM Revenue and Customs. The expert said: “Before 2015 this was relatively easy, as such arrangements were often difficult for HMRC to challenge successfully. The introduction of diverted profits tax in 2015 made it harder for multinationals and this may be why the arrangements changed so radically in 2016.” In a joint statement, Napp and Mundipharma said they had a long history of paying taxes in the UK, including $90.7 million between 2013 and 2016. The statement said: “Napp and Mundipharma independent associated companies based in the UK are transparent in the disclosure in their public accounts of their dealings with independent associated companies and in their dealings with HMRC. We follow HMRC’s guidance in full. We pay all taxes that we owe.”

2017. June 7.  Island-based investment manager HSCM Bermuda has invested $20.1 million in preferred shares in a reinsurance vehicle that will take over $35.3 million of seasoned workers’ compensation liabilities. The deal, on behalf of an unnamed company, was arranged by specialty reinsurer MultiStrat, also based in Bermuda, along with its affiliate the Annapolis Consulting Group. Rachel Bardon, managing director of HSCM Bermuda, an arm of Hudson Structured Capital Management in the US, said: “We are delighted to complete this transaction in this legacy block of business.” Tim Tetlow, a partner in the firm, added: “This transaction allows the cedant to move forward and focus on its future.” And Michael Millette, managing partner of Hudson Structured, said that he hoped to do more business with MultiStrat in the future. We are pleased to collaborate with MultiStrat in this transaction. We have studied a series of options together and expert that this will be the first of many that we complete.” Bob Forness, CEO of MultiStrat, said: “The combination of the HSCM Bermuda team’s expertise and our efforts over many months produced an attractive transaction and a template for the future. We look forward to working more with HSCM going forward.” The news came as Hudson Structured and HSCM Bermuda announced that it had appointed former KPMG Bermuda managing director Jason Carne as an adviser focusing on valuation and reinsurance. Mr Carne said: “I have been following them with interest for a while now and I’m a firm believer that the next step for ILS is to bring a fuller spectrum of reinsurance risk and opportunities, including property, casualty and long-term business to the third party capital markets.” He joins David Cash, former CEO of Endurance Specialty Holdings and Rich Carbone, ex-chief financial officer of Prudential Financial and current director of two further companies. Mr Millette said: “Our board of advisers provides the firm with breadth and depth of experience and judgment that we rely upon. Jason is an exceptional addition to the team.” Mr Carne worked at Hamilton-based KPMG for almost 20 years and was founder and leader of the firm’s insurance-linked securities practice. He also serves as a non-executive director for several Bermudian reinsurance companies. Hudson Structured and HSCM Bermuda invest across the risk and return spectrum in all instruments and sectors of the insurance and reinsurance markets. The board of advisers works as part of the HSCM Bermuda team to review strategy and investments.

2019. January 9. Climate change is having a growing impact on insurers’ bottom lines. That is the view of Bermuda-registered German reinsurance giant Munich Re, which highlights an increasing incidence of costly forest fires as a symptom of global warming. In its global catastrophe report, published yesterday, Munich Re estimated that insurers and reinsurers paid out $80 billion on worldwide natural disaster claims in 2018. That covered half of the estimated $160 billion in economic losses. The single most costly event was the Camp Fire, which devastated the small town of Paradise in northern California in November and caused 68 fatalities, as well as total losses of $16.5 billion, of which $12.5 billion were insured. Ernst Rauch, Munich Re’s chief climatologist, said global warming was causing forest fires to enter a new dimension, with losses running into the tens of billions of dollars. “Higher and higher temperatures are leading to ever greater droughts, and high humidity in the winter means that shrubbery grows quickly, creating an easily flammable material in dry summers,” Mr Rauch told Reuters. The report highlights three California wildfires, the Carr Fire in July and August and the Camp and Woolsey Fires of November, which between them caused overall losses of $24 billion, of which $18 billion were insured. So almost one quarter of insured natural disaster losses were attributable to wildfires. The year’s total of $80 billion paid out by insurers was less than the $140 billion tab they picked up in 2017, but still nearly double the inflation-adjusted $41 billion average over the past 30 years, Munich Re said. Last year ranks among the ten costliest disaster years in terms of overall losses, and was the fourth-costliest year since 1980 for the insurance industry. Hurricanes Michael and Florence generated total losses of $31 billion, of which $15 billion were insured. North America accounted for 68 per cent of insured losses, while Typhoon Jebi, which cost insurers $9 billion and caused damages in Japan and Taiwan, was the costliest event outside the US. Petra Löw, the report’s author, touched on the protection gap in developing economies. “Payouts by the insurance industry helped to boost catastrophe resilience, in other words the ability after a disaster to return to normality as quickly as possible,” Ms Löw said. “However, industrialized countries still account for the vast majority of insurance payouts following natural catastrophes.” She added: “The situation with insurance protection in emerging and developing countries is quite different, despite the fact that, for financially weak and low-income countries, improving risk management and resilience-building systems is an important way of mitigating the impact of humanitarian disasters and promoting sustainable economic growth.” However, Munich Re also noted that 50 per cent of global macroeconomic losses from natural catastrophes in 2018 were insured, a significantly higher percentage than the long-term average of 28 per cent. Munich Re NatCatService tallied 850 events, including storms, floods, fires, earthquakes, tsunamis and landslides. Asia was worst affected with 43 per cent of all events and 74 per cent of the total 10,400 fatalities. The protection gap was very apparent there, with only $18 billion of losses insured out of total losses of $59 billion.

2018. September 19. Joanne Richardson has taken over the helm at media insurer Mutual Insurance Company Ltd. The Bermudian company announced that Ms Richardson became its chief executive officer at the start of this month. “Joanne, given her extensive experience with media liability risks, is a perfect fit for Mutual,” said Rick Spurling, president and chairman of Mutual. “She has both the qualifications and the leadership skills to take Mutual to the next level of insurance products and service.” Ms Richardson said that the chance to take the helm of a leading media insurer in the insurance and reinsurance environment of Bermuda is the opportunity of a lifetime. “Mutual has over a half-century of experience underwriting media and enjoys an unsurpassed reputation,” Ms Richardson said. “With unprecedented changes in the industry come unprecedented opportunities. The time is perfect to set our next course.” Ms Richardson was most recently partner at Hiscox Insurance Company in New York, and managing director of its Media and Entertainment practice. She previously worked at Chubb as the national accounts underwriter for media liability, and at GE Capital, where she was an underwriting officer for media liability. She is a graduate of Rutgers College, Rutgers University, and is a Chartered Property and Casualty Underwriter. 

2016. April 27. HOUSTON (Bloomberg) — Nabors Industries fell the most in more than two months after the world’s largest land-rig owner missed analyst estimates partly due to pricing discounts handed out to several customers during the oil industry’s worst financial crisis in a generation. The Bermuda-based company fell almost 10 per cent in New York to $9.34, after earlier sliding as much as 12.3 per cent, the biggest intraday drop since February 9. Earnings before interest taxes, depreciation and amortization in the first three months of the year fell by 57 per cent from a year ago to $162 million, the company said late on Monday in a statement. Analysts had expected Ebitda of $195 million, according to the average of 20 estimates compiled by Bloomberg. “Nabors reported a weaker than expected quarter as activity declines, pricing concessions, and unfavorable international costs weighed on results,” Marshall Adkins, an analyst at Raymond James, wrote on Monday in a note to investors. The company was forced to give pricing concessions in the first quarter to three key international customers, chief executive officer Tony Petrello told analysts and investors yesterday on a conference call. Ebitda in its international segment is now expected to drop another 6 to 8 per cent in the second quarter, he said

2015. October 28. Bermuda-based American oil drilling rig operators Nabors yesterday posted a loss of $250.9 million for the third quarter of the year. The firm said the net income figure included the impairment of Nabors’ holdings in C&J Energy Services, which totaled $180.6 million. Third quarter operating revenues were $848 million, compared to $1.81 billion in the same quarter of 2014. Anthony Petrello, Nabors’ chairman and CEO, said: “Our third quarter results were essentially in line as increased revenue and cash flow internationally were offset by lower results in North America due to lower activity and increased exposure to spot marketing pricing. We expect more moderate sequential decreases throughout the seasonally weak second quarter of next year with gradual declines in rig activity and more rigs converting to spot pricing both in North America and internationally. Our view of the timing and shape of the recovery remains unchanged, with an expectation of a protracted trough followed by a more gradual recovery than recent cycles. Accordingly, we continue to exercise stringent control over our operating, support and capital spending in order to meet our minimum goal of break-even free cash flow. Our solid financial position and sizeable liquidity allow us to remain opportunistic should attractive long term strategic opportunities arise.”

A Hong Kong-based investment holding company that moved its domicile to Bermuda from the Cayman Islands in 2010. Formerly Vertex Group Ltd., operates through three segments: network infrastructure and electrical installation services, digital solution services, and films production and distribution, and artiste management. National Arts Holdings' subsidiaries include Network Engineering Ltd., Vertex Systems Services Ltd., VCTG Technology Ltd., Great Wall Telecommunications Group Ltd., Vertex Media Ltd. and Vertex Digital Media Ltd. The company disposed of 100 percent equity interests in Vertex CDM Ltd. on November 11, 2009. The company had a 2010 market capitalisation of $214.1 million.

2019. January 3. NCB Financial Group, the company that owns a majority stake in Clarien Bank, has made a bid to take a controlling interest in Caribbean region insurer Guardian Holdings Ltd. Controlled by Michael Lee-Chin, the Jamaican-born billionaire, NCB has a 50.1 per cent stake in the Bermudian bank. Mr Lee-Chin’s Portland Private Equity owns an additional 17.9 per cent stake in Clarien. On Monday, NCB’s subsidiary NCB Global Holdings, made an offer to all Guardian shareholders to buy up to 32.01 per cent of the company. The $2.79 per share offer is worth more than $207 million in aggregate. NCB already owns 29.99 per cent of Guardian, which is based in Trinidad and Tobago and offers life, health, property and casualty insurance, as well as pensions and asset management in 21 countries across the English and Dutch Caribbean. If the bid is successful, NCB would own a 62 per cent controlling interest in Guardian. The offer is conditional upon Guardian shareholders tendering sufficient shares to give NCB a more than 50.01 per cent stake and on regulatory approvals for the deal. The offer period is scheduled to close on February 7, 2019.

Since 10/9/1996. 

Norwegian Breakaway, launched 2013. Her 2013 maiden voyage was to Bermuda. See Cruises

2020. March 2. The Bermuda office of London-based re/insurance specialist Neon is to remain open for at least another four months, a spokesperson said. “Neon is keeping an office open until at least June as it manages an orderly run off,” she said. It was announced in November that the office was due to close because of the company’s decision to exit the property treaty reinsurance space due to a lack of sustainable and appropriate returns. While the office remains open, no more new business is being entertained. Neon, which opened a Bermuda office in 2016, is a member of Great American Insurance Group, which runs the insurance operations of parent American Financial Group.

2019. November 22. The Bermuda office of London-based re/insurance specialist Neon is to close. Personnel in Bermuda and London will be impacted by the move, the company said yesterday, adding that details have not been finalised. The on-island office of Neon is thought to have a predominantly Bermudian staff. A spokesperson said the office remains open for the time being, but no more new business is being entertained. A final date for its closure has not been decided. The closure, Neon said, is due to the company’s decision to exit the property treaty reinsurance space due to a lack of sustainable and appropriate returns. Neon is a member of Great American Insurance Group, which runs the insurance operations of parent American Financial Group. Bermudian Chris Fisher, chief executive officer of Neon’s Bermuda operation, did not return a message requesting comment. The company released a statement through its London-based public relations firm, Haggie Partners. “Neon, today, can confirm that it will cease writing all property treaty reinsurance, effective 1 January, 2020,” the statement said. “In addition, it intends to centre all property insurance underwriting through its London platform. Over the past three years we have been incredibly proud of the traction and commitment to service that our property reinsurance underwriters in both London and Bermuda have brought. Whilst we had suffered some significant catastrophe losses in these books of business in 2017 and 2018, they were within our reinsurance/retro programme and below a number of our market peers. However, with the significant hardening of retro pricing exceeding the pricing expectations of the inward reinsurance business and to keep within the constraints of our risk appetite we, along with our parent, AFG, do not believe that the property treaty class of business can provide a sustainable and appropriate risk/reward balance for Neon. As a consequence of our exit from property treaty, Neon will refocus its global property and property binders business in London, resulting in the closure of Neon’s Bermuda platform. This decision has not been taken lightly. Our Property D&F team in Bermuda are held in the highest regard, and have made a significant contribution to Neon over the last three years. Personnel in Bermuda and London will be impacted, although details have not been finalised. AFG continues to support Neon and the Lloyd’s platform and believes that Neon can make a profitable contribution to AFG’s results. AFG remains open to new opportunities and the identification of new classes of profitable business.” Neon opened a Bermuda office in 2016, appointing Mr Fisher to the top job. He started the firm with one other staff member, but within 12 months the office had six staff, five of whom were Bermudian. When he spoke to The Royal Gazette in May 2017 on the occasion of the company’s first anniversary on-island, Mr Fisher said he hoped to grow the business from its expected $20 million in gross premiums written in 2017 to $100 million within three to five years, as well as increasing staffing numbers to more than 20.

2016. May 5. Lloyd’s of London insurer Neon is celebrating its first year in Bermuda. Chris Fisher, the chief executive officer, started the firm with just one other staff member. It now has a staff of six, with plans to recruit another. Mr Fisher hopes to grow the firm from its expected $20 million in gross premiums written this year to $100 million within three to five years, as well as increase staffing numbers to more than 20. Speaking at Neon’s offices in Victoria Street, Hamilton, he said: “We’re running out of space here. We probably have room for another three people at most, so potentially we may have to look at some additional space. “In three to five years, if we have 20-plus people, that doesn’t seem unreasonable, although it’s difficult to tell. Additional people have to be supported by business flow — but I have ambitions to grow this business into other lines of business when it makes sense.” Neon, which is part of US-based American Financial Group, was set up last year under the leadership of Martin Reith to breathe new life into Lloyd’s Syndicate 2468, formerly known as the Marketform syndicate, which had taken a hit from Italian medical malpractice business. Mr Fisher said: “He wanted to bring the balance of the syndicate’s business to short tail lines of business, property insurance and reinsurance. “I was hired to do two things — start a Bermuda office for Neon and kick-start the platform here. I’m also head of property insurance underwriting for Neon globally. Through the balance of 2016, I began to write an amount of property insurance business with a focus on the larger Fortune 100 companies.” Over the past year, Neon has expanded from property insurance into other areas, like property reinsurance and professional indemnity cover. Mr Fisher said: “We would love that reinsurance business to grow from a reinsurance perspective, but we may have an opportunity to grow into the insurance-linked securities space as well.” He added that Nicholas Pritchard, appointed as head of reinsurance, had considerable experience in the reinsurance segment. “That’s a potential growth area for us over the next two years or so. The commitment and support from London has been fantastic and Martin Reith has been here multiple times.” He said the firm’s local profile was due to be boosted by a special America’s Cup reception for clients, due to be held at Commissioner’s House in Dockyard next month. Neon is a member of Great American Insurance Group, which runs the insurance operations of parent AFG and had already benefited from the link-up. Mr Fisher said: “We are exploring areas where we can get some synergies going with Great American as well and access additional business to the island via their platform. We have done one deal with them on Canadian business, which we otherwise wouldn’t have seen. At the moment, we’re targeting for this year $20 million of gross written premiums for the Bermuda business, which wouldn’t be a bad start at all. Market conditions have been tough — there is a lot of oversupply of capacity, but where we have the opportunity to build the company in a responsible way is through business where we have the ability to use the strength of our relationships to help carve out what we consider to be advantageous underwriting positions on programmes. For 2017, more than 50 per cent of the business will be lines of business we didn’t participate in 2016. That shows you the amount of turnaround and change brought about by the revitalization of the syndicate. A big part of it is getting the right people on board and the team we have here at Neon Bermuda is first class.” Mr Fisher said he was proud of the fact that the current staffing included only one non-Bermudian. “My commitment as CEO is whatever I can do to get suitably qualified Bermudian staff into this business, I will do. That’s something I very much want to achieve. We want to make sure Bermudians are in as many positions in the company that they are suitably qualified and experienced to be in.”

2016. June 21. Lloyd’s of London-based insurer Neon has opened a new office in Bermuda. And the firm aims to expand its on-island two-strong team as it targets the US market. Neon has recruited Bermudian Chris Fisher, an underwriter with 25 years of experience in the insurance industry in Bermuda, Britain and the US, to head up the Bermuda operation. He was previously chief underwriting officer of insurance for Ariel Re in Bermuda. Mr Fisher said: “I’m delighted to be joining Neon to open and head its new Bermuda office. We believe that the existing expertise of Neon’s Lloyd’s syndicate, in conjunction with the strong Lloyd’s financial rating and our stated goal of building upon our local underwriting talent, means that we will be able to offer a compelling and relevant proposition to this strategically important market.” Mr Fisher’s office will write direct and facultative property insurance on a global basis as an approved cover holder for Lloyd’s Syndicate 2468. Business will be considered on a primary quota share and excess of loss basis with critical catastrophe line sizes up to $10 million and fire capacity up to $25 million. Martin Reith, CEO of Neon, said: “Opening the Bermuda office is a strong statement of our intent to expand Neon’s international presence and grow the business. In Chris, we have a highly regarded local underwriter with strong relationships on the island as well as in the US. We have bold ambitions to grow our Bermuda platform and anticipate adding both personnel and product lines in the near future.” Mr Reith added: “More broadly, opening in Bermuda, which follows the completion of our strategic review, is a further sign of the momentum within Neon as we continue to make encouraging progress with the strategic turnaround of the business. It’s an exciting time for the group and we look forward to updating the market with further news demonstrating this positive trajectory. We think it’s a great outpost for us as we continue to build our new branded company name. Given the significance of the Bermuda market in the global insurance and reinsurance stage, it seems to be a logical next step for us.” Mr Fisher has also previously worked for Ace, now known as Chubb, in various senior underwriting and executive roles, and he started his career at BF&M.

2019. January 9. Nephila Capital has struck a deal to provide coverage for when the wind does not blow at all. Nephila, the world’s largest manager of insurance-linked securities funds, has teamed up with Allianz Global Corporate and Specialty’s Alternative Risk Transfer unit to help a new $600 million wind farm in the US ensure revenue stability, even when the turbines stop turning. The coverage is in the form of a proxy revenue swap (PRS), a financial derivative that will allow owners of the High Lonesome wind farm in Crockett Counties, Texas, to minimize risks related to price, as well as weather. The PRS relates to a 295-megawatt portion of the 450-megawatt wind farm, which is under construction and is owned by Enel Green Power North America, a subsidiary of Enel, an Italian corporation. In a statement, Enel said this was the biggest PRS in the world by capacity for a single plant. Allianz and Nephila executed the PRS in collaboration with REsurety, a renewable energy risk manager. Lee Taylor, chief executive officer of REsurety, said: “Renewable energy projects are under increasing pressure to deliver predictable returns despite the increasing volatility of the value of intermittent generation. “We developed the Proxy Revenue Swap specifically to deliver unrivalled certainty of cash flows, regardless of power price volatility and weather-driven intermittency. We are delighted to have had the opportunity to collaborate with Enel, Allianz and Nephila to bring the largest PRS transaction to fruition.” Nephila was acquired by Markel Corporation last November in a deal worth $975 million. It continues to operate as a separate company within the Markel group. As of last September, Nephila had $12.2 billion of assets under management.

2017. November 1. Insurance investment firm Cedent Ltd has teamed up with Nephila Capital to create a new Bermuda-based firm to advise corporations and countries on managing climate risk. Resilience Economics Ltd will be backed by $500 million from Nephila, which is also based in Bermuda and is the world’s largest insurance-linked securities manager. Resilience says it will use advanced data science to develop and structure climate risk capital solutions for global institutions and governments. Michael Coles, the insurtech expert and chief executive officer of Cedent, said Resilience was not a risk-bearing entity, but that it would work with companies to help them understand the impact climate risk has on their financials. “More than 1,000 CEOs and CFOs of public companies disclosed that adverse weather directly drove poor financial results on earnings calls with stakeholders so far this year,” Mr Coles said. “A few decades ago, businesses did not transfer the risk of fluctuations in currencies, interest rates, or commodity prices but eventually stakeholders deemed risk retention unacceptable once risk transfer markets developed. Climate risk retention may soon be deemed unacceptable and if so, climate capital solutions will be the new imperative.” The National Centre of Atmospheric Research estimates that the US economy can vary up or down by as much as $240 billion each year, as a result of day-to-day (non-catastrophic) weather fluctuations. However, Resilience Economics claims that total risk transferred to the insurance sector amounts to just $3 billion, underlining the potential for growth in this sub-sector of the risk transfer industry. Barney Schauble, managing partner at Resilience’s strategic partner Nephila, said: “We believe good advice around quantification and transfer of weather and climate risk is the critical key to unlocking the market potential and we are eager to support Resilience Economics and its clients in developing protection that responds to their specific exposures.” Resilience has named Lynda Clemmons, a senior executive at NRA Energy, to its advisory board. Alternative risk transfer expert Steve Evans’ website Artemis.bm said Resilience was targeting an area of risk that was underserved by traditional insurers and reinsurers. The website added that “the use of technology alongside ILS-backed capacity and capital market techniques will mean its solutions can be delivered efficiently and effectively. “This also means the opportunity is significant for Nephila Capital to put more of its risk capital to work in emerging areas, solving problems at the front end of the value-chain for corporates, institutions and sovereign entities, while adding another unique angle to its investor offering. Resilience Economics will look to take the climate risk discussion to the CFO level, where organisations and institutions will be receptive to solutions that can help to remove volatility caused by the weather out of their businesses.”

In addition to a fleet of standard dry and refrigerated containers, BCL has a fleet of more specialized equipment including:

• Flat racks
• Bulk and tank containers
• Mafis and road trailer for non-containerized cargo
• Specialized containers for the carriage of livestock

The BCL service from Port Elizabeth to Bermuda is the fastest and most efficient shipping service available to the island.  It departs from Port Elizabeth early on Friday evenings and arrives in Bermuda late Sunday afternoon for discharge of cargo on Sunday evening.  Importers can pick up their cargo starting at 6:00 a.m. Monday mornings.

Multi-national footwear giant, reportedly with over $7 billion of profits parked offshore including in at least 12 subsidiaries in Bermuda. According to the US-based Citizens for Tax Justice, ten of the Bermuda subsidiaries are actually named after Nike shoes: Air Max Limited, Nike Cortez, Nike Flight, Nike Force, Nike Huarache, Nike Jump, Nike Lavadome, Nike Pegasus, Nike Tailwind and Nike Waffle. Nike is believed to very aggressive when it comes to sheltering profits overseas.

2018. December 7. Nordic American Offshore Ltd has been awarded a one-year fixed contract for its platform supply vessel NAO Power. The company has a fleet of ten platform supply ships. NAO Power will commence its new contract early this month, and will be working in the North Sea for a “first-class company”, according to a statement by NOA. The contract also has two three-month options after the initial firm period. Nordic American Offshore Ltd was created in 2013 by Bermudian-headquartered Nordic American Tankers.

2017. March 7. Nordic American Offshore Ltd reported a fourth-quarter loss of $9.8 million this morning. The Bermuda-based company, which operates a fleet of ten supply vessels working in the North Sea oil industry, also declared a dividend of 2 cents per share. The loss which breaks down to 48 cents per share, compared to a loss of $4.4 million in the fourth quarter of 2015 and followed a loss of $8.6 million in the third quarter of last year. NAO’s full-year loss totaled $32.1 million, compared to a loss of $10.8 million in 2015. “Several service companies in our sector are in a difficult financial position,” NAO stated. “Going forward, NAO sees opportunities for expansion. We concentrate on keeping our vessel operating costs low, while always maintaining our strong commitment to safe operations.” The firm raised $47.5 million through a share offering which closed last week and said proceeds could top $50 million, depending on the uptake of the $7 million over-allotment option. NAO said: “The offering clearly reflects the investor confidence in NAO. Access to financing, both equity and debt, remains a competitive advantage for us.” NAO was founded in 2013 and its biggest shareholder is oil tanker operator Nordic American Tanker, another Bermudian company, which invested $10 million in the offering. Charter revenues plunged to $16.25 million last year from $34.8 million in 2015. The company said seven of its ten vessels were in service. North Sea production was hit by the dramatic fall in world oil prices early last year. But crude prices have recovered to above $50 a barrel in recent months and the deal by Opec countries to reduce output to support prices has added confidence in the sector. NAO said there had been encouraging signs in the market for chartering its platform supply vessels (PSVs) since the end of last year. “We have seen an improvement in PSV rates the last weeks,” NAO said. “At the time of this report, rates for the first quarter of 2017 are above the level of the fourth quarter of 2016." NAO shares closed at $1.15 on the New York Stock Exchange on Monday evening — down from $5.25 a year ago.

2018. June 22. Bermuda-headquartered Nordic American Tankers (NAT) has decided it will not conduct a bond offering to raise additional capital. In an open letter to shareholders and investors, the company noted improving conditions in the tanker market. The company has a fleet of 33 Suezmax tankers, including three new tankers that are being delivered this year. It has two of its fleet vessels up for sale. NAT has not made a profit during the past two years, and reported a net debt of $266 million at the end of the first quarter. The company previously announced it was planning a re-capitalization programme — to be finalized by the end of the second quarter — designed to replace its existing revolving credit facility that dates back to 2004. However, in a letter to shareholders and investors this week, the company said: “In the course of the last nine months, the financial position of NAT has changed much to the better. It is worth noting that the expected improvement in the tanker market is becoming clearer. We also brought this up in our February 2018 report. We have now decided that it is not in the best interest of NAT shareholders to conduct a bond offering. NAT has financial flexibility through a large Suezmax fleet and a long standing co-operation with our customers; oil and energy companies, including oil traders. Our lending and investment banks in the US and Europe play key roles in NAT. The debt per ship of NAT is low — below the scrap value of each ship.” The company said that “when conditions change” it is its policy “to retain its expansionary business model that has been rewarding over many years”. It said it expects to immediately reap the benefits of an upswing in the tanker markets. Shares of NAT rose 21 per cent on Monday when the letter to shareholders was released, to $2.62.

2017. May 8. Island-based oil tanker operator Nordic American Tankers Ltd this morning reported a first-quarter loss of $3.4 million, after reporting a profit in the same period a year earlier. On a per-share basis, the company said it had a loss of 3 cents. Losses, adjusted for non-recurring costs, were 1 cent per share. The results did not meet Wall Street expectations. The average estimate of five analysts surveyed by Zacks Investment Research was for earnings of 3 cents per share. The firm, which has a fleet of 30 Suezmax tankers, posted revenue of $55.2 million in the period. It earned an average of $22,700 per day per vessel against a break-even figure of $11,500, including financial charges and administration costs. Last month, NAT declared a dividend of 20 cents per share for the first quarter. The company’s shares were trading down by 30 cents, or 4.2 per cent, at $6.77 in mid-morning trading in New York.

2017. February 7. Nordic American Tankers made a $1.8 million loss in the fourth-quarter. That equates to a loss of two cents per share. Five analysts surveyed by Zacks Investment Research had estimated the Bermudian-based company would post a break-even result. For the last three months of 2016 the company recorded revenue of $52.2 million, down from $77.3 million in the same period of 2015. The full-year profit was $32.9 million, or 36 cents per share, down from $114.6 million, or $1.29 per share, in 2015. Revenue for the year was $236.8 million. The oil tanker sector has faced challenges in the last few years. The yearly average spot rate of Suezmax vessels, the only size of vessel in Nordic American’s 30-strong fleet, dropped below $20,000 per day from 2011 to 2013, and was below $30,000 last year. However, the company has a cash break-even rate below $11,000 per day per ship, and it has reported a rise in TCE, or time charter earnings, in the fourth quarter, up from $16,700 during the third-quarter to $21,600 in the final three months of the year. The company said that level has risen to $25,000 so far this year. Nordic American has ordered the construction of three new Suezmax tankers, to be delivered in the second half of 2018. It plans to pay for those ships mostly from the successful issuing of an additional $120 million of shares last September, but also from cash from operations and with debt. Later this month the company will pay a common share dividend of 20 cents, the 78th time it has paid a dividend since 1997. In a statement, the company said that with TCE rising, it was “reaping the benefits of increasing our fleet over the last few years”. The company is engaged in the transportation of crude oil and has no investments in the dry cargo or container sectors. Nordic American stated: “In addition to paying a quarterly dividend, we wish to continue building a cash position in order to keep the low debt level when we grow our fleet.” The company’s adjusted net operating earnings were $28.2 million for the fourth quarter, up from $21.7 million in the third quarter. Nordic American has a credit facility of $500 million, which matures in December 2020. Commenting on the world economy and tanker market, the company said: “The development of the world economy affects the tanker industry. A low oil price is stimulating the world economy, which is positive for the tanker market.” Nordic American’s shares yesterday closed up 33 cents at $8.68 on the New York Stock Exchange.

NCL's Kevin Sheehan. See above story

2017. August 25. Novae has decided to close its US direct and facultative re/insurance operations in Bermuda. The news came as Bermuda-based insurance and reinsurance group Axis Capital increased its offer to buy Novae. Novae, a London-based carrier, confirmed the unit’s closure yesterday, after an earlier report in industry publication Insurance Insider. Novae declined to comment on the jobs impact of the decision. However, the Insider reported that the D&F unit’s team, led by Nik Lucking and including senior assistant underwriter Keerome Maybury and deputy unit head Nick Garside, had been let go. Last month Novae agreed to be sold to Axis in a transaction worth $604 million. The deal is expected to close later this year. But yesterday, Axis announced a “full and final offer” for Novae of 715 pence per share — up 15 pence per share on its offer of July 5 — valuing the company at around $611 million. Albert Benchimol, chief executive officer of Axis, said: “The benefits of this transaction announced with our initial offer have not materially changed with this revised offer. We believe that our final bid represents compelling and full value for Novae, as recognized by the boards of both companies. By offering Novae shareholders an improved cash offer, Axis aims to bring certainty to the transaction.” Novae’s island operations are based in Ideation House, on Pitts Bay Road. In a statement given to this newspaper, Novae said yesterday: “The Novae Group board has decided not to renew its quota share reinsurance contract in Bermuda for the 2018 year of account. Furthermore, the group will no longer underwrite US direct and facultative re/insurance through our Bermuda platform. International property-catastrophe reinsurance remains a key class of business for Novae and will continue to be underwritten in 2018.” Novae also writes international reinsurance out of its Bermuda office, with the team led by Philippe Chevereau. The company set up its Bermuda base two years when Stuart Heath, Novae’s property divisional head, expressed high hopes for further expansion on the island. Early this month, Novae announced that it made a pretax loss of £14 million ($17.9 million) in the first half of 2017 and scrapped its dividend. At that time, chief executive Matthew Fosh said the firm’s strategy since 2015 had been to re-engineer its underwriting portfolio in the face of a “deteriorating soft market” that he said had tested even the largest industry players.