Liquidators have been appointed at Bermuda-based reinsurer ESG at the request of judges, according to a report in Accountancy Age.

The accountancy publication said that Mike Morrison and Charles Thresh of KPMG Advisory Ltd. in Bermuda and Michael Walker of KPMG LLP UK had been appointed joint provisional liquidators of ESG Reinsurance (Bermuda) Ltd. on Christmas Eve by order of the Supreme Court of Bermuda.

The company provided accident, medical, financial and special risk reinsurance, but has not written new reinsurance business since 1998, the firm said yesterday.

Mike Morrison, joint provisional liquidator of ESG and insurance restructuring partner at KPMG, said: "Unfortunately ESG's financial position is such that it does not have sufficient assets to cover its liabilities.

"We are currently determining a more detailed understanding of ESG's financial position and would urge creditors and other counterparties of ESG to make contact with us as soon as possible."

Two subsidiaries, ESG Reinsurance Ireland Ltd. and Accent Europe Insurance Company Ltd. are also in administration.

Jim Luby of McStay Luby was appointed provisional administrator of the two divisions by the Irish High Court on December 18.

In 2007, ESG settled a lawsuit with auditor Deloitte in Ireland, having previously alleged that it suffered a significant loss of business because three Deloitte companies were negligent and in breach of their duties when working as the reinsurer's auditor.

In 2005, ESG said it would exit the traditional reinsurance segment of its business after posting a loss of $6.9 million for the year ended December 31, 2005, compared to a loss of $12.4 million for 2004 and instead ofcus on direct marketing of its products.