The Cayman Islands Monetary Authority has notified the official liquidators of Alpha Re that it has pulled the insolvent reinsurer’s insurance licence for continued breaches of the Insurance Act.
This included the non-payment of licensing fees in 2018 and 2019, failing to maintain solvency margins, not having effective risk management and governance systems, failing to file annual returns and audited financial statement for 2016 and 2018, and not notifying CIMA of any shareholder or ownership changes.
In an enforcement notice issued on 20 Oct., the authority declared the former directors of the company – Gregory Toleram, John Drake and Edward Lynch – not fit and proper to hold any directorship positions of licensees in Cayman. The three, as well as Mark Graham and Donald Solow,, are also considered not fit and proper to have control or ownership of a licensed entity in Cayman.
Alpha Re was formed in Cayman in February 2011 but went into liquidation in January 2018, several weeks after it found itself unable to pay a US$127 million arbitration award.
The amount was awarded in favour of Utah-incorporated insurer Great Western. The company demanded arbitration against Alpha Re, because the reinsurer allegedly failed to pay monthly account bills under a co-insurance agreement.
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