New York Times has its own captive...
The parent company of the New York Times which this week ran a page one story critical of “Bermuda-style financial wizardry” practised by corporations owning captive insurance companies in the US has a captive of its own, it emerged yesterday.
The revelation was made by Caroline McDonald, a journalist for the National Underwriter’s online news service PropertyCasualty360.com.
The story said that the Times’ captive, named Midtown Insurance Co, is listed as a consolidated subsidiary of The New York Times Co in its 10-Q filing for the US Securities and Exchange Commission, filed November 8, 2007 for the period ending November 30, 2007.
A New York State Insurance Department (NYSID) spokesperson confirmed with the website that the Midtown Insurance Co captive is still viable.
The Times’ story opened on the front page of Monday’s edition with: “Companies looking to do business in secret once had to travel to places like the Cayman Islands or Bermuda. Today, all it takes is a trip to Vermont.”
The National Underwriter made the point that New York where the Times’ captive is domiciled does not publish information about the parent companies of its captives. Vermont, on the other hand, does publish this information. The Times also did not include details about its captive in its SEC statements.
According to an examination report on the captive by the NYSID, signed by former New York Insurance Superintendent Eric Dinallo on January 29, 2009, the captive was managed by Marsh Management Services as of July 1, 2003. It was incorporated as a pure captive on May 15, 2003, the website added.
The document says that for the period ended December 31, 2007, the company’s insurance coverage consisted of fleet and multimedia, Terrorism Risk and Insurance Act (TRIA) coverage, property, weather, excess umbrella liability and inland marine.
The New York Times did not respond to inquiries from the website.