The Bermuda Monetary Authority (BMA) and White Rock Insurance (White Rock Bermuda) have jointly agreed to a course of action in the Supreme Court of Bermuda. The BMA says “the course of action will focus on pursuing maximum recovery for the (re)insureds impacted by the alleged fraud involving Vesttoo-related segregated accounts (Vesttoo Cells).” Insurtech firm Vesttoo provides the insurance industry with access to capital markets through ILS — an alternative form of reinsurance. Vesttoo has recently made headlines for allegations concerning fraudulent letters of credit related to Vesttoo’s insurtech programmes. Both parties have agreed for the Bermuda Supreme Court to appoint Charles Thresh and Michael Morrison of Teneo Limited to act as Joint Provisional Liquidators (JPLs) for White Rock Bermuda with respect to the impacted Vesttoo Cells. The JPLs and the board of directors and management of White Rock Bermuda will pool their resources together. “This action applies only to the impacted Vesttoo Cells. White Rock Bermuda continues to operate in the ordinary course of business, and this action has no effect on any other cells or White Rock Bermuda clients”, says the BMA.
