to the rehabilitator of Mutual Fire, Marine & Island Insurance Company to settle litigation over reinsurance claims allegedly owed by Chesapeake, trade magazine Business Insurance has reported.

Bermuda's largest independent management group, International Advisory Services, (IAS) headed by Mr. David Ezekiel, is administering Chesapeake Insurance Company.

The insurance company, formed in Bermuda in the mid-1970s, wrote third party and related business.

It is now effectively in run-off, according to IAS executive vice president and controller Mr. Terry Power.

The legal action related to one insurance contract, said Mr. Power.

International Advisory Services took over management last last year from The Sedgwick Group.

Philadelphia-based Mutual Fire, Marine & Island Insurance Company was placed in rehabilitation by the State of Pennsylvannia in the 1980s.