Beleaguered Mutual Risk Management was yesterday hit with another blow: the resignation of its long-time employee and president John Kessock.

The move is the latest in a spell of bad news for the Bermuda insurer, which posted close to $100 million in losses last year, has seen multiple rating downgrades, its US subsidiaries being put in to run-off, its share price tumbling to well below one dollar, and delisting from the New York Stock Exchange.

Mr. Kessock, 52, had been with the company for 23 years and was instrumental in setting up MRM's Insurance Profit Center (IPC) rent-a-captive facility in the early 1980s. He had been president of the company for more than a decade, since 1991.

Rating agency AM Best last month placed the B+ (Very Good) rating of IPC Group (Bermuda) under review with negative implications pending discussions with management on the collateralised nature of its loss reserves and strategic alternatives including finding another quality fronting carrier and other related issues.

The concern over finding another fronting carrier follows the MRM US insurers - Legion and Villanova - being put in to regulatory run off last month. The companies, along with MRM's Illionois insurer Legion Indemnity, have operated under an intercompany reinsurance pooling arrangement since 1996. Additionally, they have operated as the fronting carriers for most of the Bermuda-based IPC Group rent-a-captive programmes.

Mr. Kessock's surprise departure was said to be "in order to pursue personal interests".

MRM CEO Robert Mulderig said: "John played a key role in building the company over the years, particularly the sales and marketing of the IPC product. We wish him all the best in his future endeavours."

As of 2001, records filed with the US Securities and Exchange Commission (SEC) indicated that Mr. Kessock held about two percent ownership or nearly 864,000 shares.

The announcement that Mr. Kessock was stepping down follows the resignation of CFO Andrew Cook. Meanwhile, interim CFO James Kelly was replaced recently by Angus Ayliffe.

MRM also saw the resignation of five of its directors in recent weeks. They were: XL Executives Fiona Luck, Michael Esposito and Bruce Connell and directors Welford Tabor and William Galtney. John Kessock, as company president, also sat on the board of directors.