Telecoms company Cable & Wireless has settled a high-profile court case alleging fraud at Pender Mutual Insurance Company, the firm's Isle of Man captive insurer.
The case, which Cable & Wireless and Pender filed against insurance broker Willis – Pender's Isle of Man captive manager, law firm Collyer-Bristow and others, alleged that certain individuals had siphoned off around £80 million in reinsurance premiums from Pender to a Guernsey-based protected cell company, Messenger, which is now in administration.
The settlement has enabled Cable & Wireless to start putting together a scheme of arrangement to wind down PMIC. PMIC's creditors have been notified of a meeting to agree the scheme. The meeting, scheduled for May 19, will be held in Singapore and is being organised by law firm Freshfields Bruckhaus Deringer.
Creditors of PMIC are mostly global telecoms companies that were insured by PMIC. PMIC, an affiliate of Cable & Wireless's original captive insurer, Pender Insurance, was formed to write third-party insurance business. Reinsurance recoverability will be a central consideration in the scheme, says Neil Golding, a spokesman for Freshfields.
The case, which Cable & Wireless and Pender filed against insurance broker Willis – Pender's Isle of Man captive manager, law firm Collyer-Bristow and others, alleged that certain individuals had siphoned off around £80 million in reinsurance premiums from Pender to a Guernsey-based protected cell company, Messenger, which is now in administration.
The settlement has enabled Cable & Wireless to start putting together a scheme of arrangement to wind down PMIC. PMIC's creditors have been notified of a meeting to agree the scheme. The meeting, scheduled for May 19, will be held in Singapore and is being organised by law firm Freshfields Bruckhaus Deringer.
Creditors of PMIC are mostly global telecoms companies that were insured by PMIC. PMIC, an affiliate of Cable & Wireless's original captive insurer, Pender Insurance, was formed to write third-party insurance business. Reinsurance recoverability will be a central consideration in the scheme, says Neil Golding, a spokesman for Freshfields.
