Mystery surrounds legal action between Overseas Partners Re Ltd. and a former employee.

A writ filed in the Bermuda supreme court on June 14 named plaintiff Jean-Bernard Crozet and defendant Overseas Partners Re Ltd. (OP Re)

Neither Mr. Crozet nor a spokesman from OP Re would comment yesterday and lawyers for the complainant, Mello Jones and Martin, did not return calls yesterday.

On April 30, it was announced that Mr. Crozet had recently joined Alea Bermuda as vice president and underwriter reporting to Andre Perez, senior vice president and head of office.

In a press release, Alea said that Mr. Crozet would contribute to the development of the finite reinsurance book of business.

Mr. Crozet began his career in 1994 at PSA Finance in London, U.K.

He progressed to AGF Insurance in 1996 and to CAN Re in 1998.

In 1999, Mr. Crozet joined Overseas Partners Re in Bermuda as pricing manager and was subsequently promoted to vice president, actuarial and then to vice president, finite underwriting in 2001.

In a surprise announcement in mid-February, Overseas Partners Limited (OPL) announced it was bowing out of the market .

The privately held company, set up in 1983 as United Parcel Service's (UPS) reinsurer, said it planned an "orderly runoff" of its reinsurance operations.

Staff at the time said the decision was "out of the blue" and one industry insider was said to be "flabbergasted" by the announcement that the company was closing up shop.

The Royal Gazette reported in February that up to 20 of the Bermuda office's 60 staff were to be made redundant by April.

A source said "staff severance packages are being worked out". Staff were reportedly told that they would lose their severance package should they speak with the media and the severance package was understood to be six-months pay.

The runoff was expected to take between three and five years.

At the time of the announcement, the company reportedly had capital in the region of $1.3 billion and a strong balance sheet, loss reserves independently reviewed and approved by two outside actuarial and consulting firms, and significant operating strength in terms of employees, and customer and broker relationships.

The company has had its share of trouble including loss of its core business following a UPS court battle with the US Internal Revenue Service (IRS) resulting in the loss of its UPS shippers risk coverage.

The loss of that revenue, which accounted for close to 40 percent of OPL's 1999 premium revenue, left it struggling to reposition itself in the global reinsurance market. The company remains firmly tied to UPS however with its shareholder base made up of 98,000 past and present employees of UPS.

But while losing the UPS shipper's risk business was a blow the company had already moved in to other lines of business and with the hiring of CEO Mary Hennessy in 2000, OPL began its turnaround.

The company had been widely viewed as a venture that fought its way "back from the brink".

OPL's move to exit the insurance market is understood to have resulted from a push by shareholders who may feel they could maximise the return on their investment through other vehicles.

Poor underwriting results may also have driven the decision and at the time Morgan Stanley said: "The decision to exit the market likely stems from the company's poor underwriting results in recent years."

The analysis went on to say however that the move could be a positive for the market as it "reduces capacity".

The company reported an underwriting loss of $524.6 million in 2000.

As part of the run off OPL's catastrophe reinsurance business was to be taken over by "strategic partner" Renaissance Re. OpCat wrote more than $60 million in premiums last year and had $400 million in capital supporting it.