ESG Re opens $60 million suit against Deloitte & Touche

Bermuda-based ESG Re has launched a $60 million dollar negligence claim against auditing firm Deloitte & Touche in the Bermuda, Ireland and the US.

Although registered in Bermuda, ESG Re operates principally out of Dublin, Ireland, and the case will be heard in the Dublin Commercial Court. ESG Re alleges the Deloitte firms were negligent and in breach of their duties in providing accounting services. ESG said the company suffered substantial loss of business as a result of Deloitte's decision to resign as auditor in 2002.

ESG said the company had been unable to comply with US SEC requirements, which led to ESG shares being de-listed from the Nasdaq exchange. The case has been adjourned until April 15.

... While D&T convinces judge on Fortress Re

Auditing firm Deloitte & Touche has won a small victory in three ongoing lawsuits brought against them by Sompo Japan Insurance Inc., Aioi Insurance Co, also of Japan, and the liquidators of now defunct Bermuda-based Carolina Re over the collapse of aviation reinsurer Fortress Re.

In a recent ruling, Richard J. Wertheimer, who is overseeing discovery in the case, made a recommendation that the three separate lawsuits filed against Deloitte should be tried together. The plaintiffs were seeking separate trials.

When Fortress Re collapsed in 2001, it was believed to be running the largest pool of aviation insurance in the world. The plaintiffs allege that Deloitte's failure to disclose billions in hidden claims led to $3.5 billion in losses by pool members.

Deloitte has denied accountability, saying claims should be made against Fortress Re for any misleading or incomplete financial information that led to the reinsurer's collapse.

Carolina Re, in particular, was hoping for a separate hearing, as they have said their case is less complex than the suit filed by the two Japanese insurers, and hinges on their submission that Delitte failed to properly audit Carolina Re's books under Bermuda accounting rules. The judge presiding over the case in Greensboro, North Carolina, Ben F. Tennille can opt to hear the trials separately or together, and a trial date has tentatively been set for September 6, 2005.

Investment assets hit $141 billion

Assets under management in Bermuda collective investment schemes, which include mutual funds, segregated account companies and trusts, increased to $141 billion in the third quarter of 2004, from $99 billion in the same period in 2003 according to the latest quarterly report released by the Bermuda Monetary Authority (BMA).

The report gives an update on regulatory initiatives, as well as financial statistics for the quarter ended September 2004.

The report shows that the number of collective investment schemes continues to steadily rise, with a total of 1,764 entities in Q3, 2004 compared to 1,444 in Q3, 2003.

The number of applications approved for companies partnerships and permits, however, has been steadily decreasing since the fourth quarter of 2003. From a high of 431 in Q4, 2003, the number of total applications approved in Q3, 2004 was 337, the lowest since the same quarter in 2003. Approved local company applications also continues to fall, with just 48 in Q3, 2004, the lowest since Q3, 2003.

Bank appoints health manager

The Bank of Bermuda has appointed Julie Harrington as corporate health manager for the bank.

In her new capacity, Ms Harrington will be responsible for implementing the Bank's Wellness Programme launched for bank staff yesterday. Ms Harrington comes to the bank with more than 32 years experience in education and preventive health care, said a bank press release. Her experience includes 18 years at the King Edward VII Memorial Hospital as a registered nurse.

The bank said its new wellness programme was designed to encourage employees' personal and professional productivity and physical and mental well-being.

The programme will focus on education and prevention and will include regular educational newsletters being sent to staff, staff awareness sessions, a health topic of the month and pointers on how to manage chronic health conditions.

Swiss Re posts higher 2004 profits

ZURICH (AP) ? Swiss Reinsurance Co., the world's second-largest reinsurance company, on Thursday reported a 45 percent increase in profit for 2004 due to a high return on investments.

The earnings of 2.5 billion Swiss francs ($2.2 billion) compares to a profit of 1.7 billion francs in 2003. The company did not report quarterly earnings.

The 2004 profit figure "demonstrates Swiss Re's ability to successfully grow earnings", said Chief Executive John Coomber.

"Looking ahead, we are resolved to maintain pricing adequacy and we see our strategies for Asia and for risk securitisation as key to delivering growth in earnings per share."

Returns on investments were 5.8 percent, compared to 5.1 percent in 2003, the company said. Total investments were 6 billion francs ($5.2 billion), up 20 percent from the previous year.

Total premiums earned were four percent lower, at 29.4 billion francs ($25.5 billion), but were broadly flat at constant exchange rates, Swiss Re said.

All three of Swiss Re's business units ? property and casualty; life and health; and financial services ? contributed to its higher earnings, the company said.

"Swiss Re is optimistic about future business opportunities," the company said. "Given its leading market position ... Swiss Re expects to deliver further growth in earnings in 2005."

BPWA to host lecture, banquet

The Business and Professional Women's Association of Bermuda's International Representative, Liz Benham-Herman, will be the guest speaker at a special candle-lighting ceremony for the Dame Marjorie Bean lecture series and banquet on April 2.

A native of Johannesburg, South Africa, Ms Benham-Herman emigrated to Canada in 1973 where she worked as a nurse in the Labour and Delivery Unit at Vancouver General Hospital.

She moved to the United States in 1985 where she formed her own company, Sel Group International, an importer and distributor of corrugated building panels, servicing the wholesale, building materials and the home improvement industry.

In 1998 she merged her company with Suntuf Inc. and became vice president of sales and marketing for three years until she retired in 2001.

In those three years she had taken the company from $9 million to $22 million in annual sales.

Not happy to sit idly by and enjoy retirement, Ms Benham-Herman formed a new company called Simple Home Solutions, which manufactures and markets a first-of-its-kind hands free sliding door opener named 'The Footie'.

Ms Benham-Herman is listed in the 'Who's Who of the World of Accomplished Women' and along with her husband, Kenny Herman, is a member of the World President's Organisation (WPO), a membership comprised of presidents and CEOs of corporations.

The Business and Professional Women's Association of Bermuda's banquet, which starts at 7 p.m. on Saturday, April 2, will be held at the Harmony Club in Paget.