Vesttoo to liquidate Bermuda unit
Reprints
Embattled insurtech Vesttoo Ltd. said late Tuesday it will liquidate its collateralized insurer in Bermuda Vesttoo Alpha P&C Ltd., but it will continue to operate branches in New York, London and other territories.
“As part of Vesttoo’s business focus moving forward after the recent events, the company’s management has decided to focus its activities on a limited number of high-quality and large markets,” a Vesttoo spokesman said in a statement.
The statement said the team of roughly 50 “core members” at the reinsurance capital platform would continue to operate the company.
Also on Tuesday, the Bermuda Monetary Authority began court proceedings to appoint provisional liquidators of the Vesttoo unit.
Vesttoo’s future was thrown into uncertainty last month when it was revealed that a fraud may have been perpetrated within its system involving a fraudulent letter or letters of credit.
The company, which specializes in noncatastrophe insurance-linked securities and collateralized reinsurance coverage, said on Monday that it is in talks with investors to find alternatives to replace the letters of credit.
Several other companies that did business with Vesttoo have been affected by the scandal, including Aon PLC, which disclosed that it faces legal proceedings related to transactions with Vesttoo.
In addition, several insurers that did business with Vesttoo said they are seeking to replace capacity provided through the Tel Aviv, Israel-based company.
