Policyholders of British American Insurance Company in Bermuda received payouts from the now defunct company well before those in other jurisdictions.This from Official Receiver Stephen Lowe yesterday as he defended the actions of authorities in the company’s liquidation.Mr Lowe said authorities had secured payouts for the Bermuda policy holders despite a number of obstacles, including the fact the Bermuda receivers had to deal with officials in the Bahamas where British American was incorporated.Dozens of policyholders queued for hours on Monday at British American’s Front Street offices to get long-awaited partial payouts from the company following its collapse.As they queued, an eight-page detailed letter on the company’s downfall was handed out demanding an independent investigation into why winding-up proceedings weren’t initiated against British American earlier, and why it’s taken more than two years for policyholders to get back any of their money.“Late yesterday afternoon I was provided with a copy of a document which I understand was being distributed to BAICL policyholders who were at the BAICL office collecting their dividend cheques,” Mr. Lowe said in a statement.“The document is not signed, appears to be addressed to policyholders, and the identity of the writer is not known.“It sets out a litany of complaints against various parties including the Bermuda Monetary Authority (“BMA”), KPMG (acting as my agents in the liquidation of BAICL), and Ms Wenda Krupp, a consultant with BAICL who has been assisting in the winding down of the business.“It is not my intention to respond to each and every allegation set out in the document. However, I would like to make it clear that the liquidation of this Branch of the Company in Bermuda has been conducted in accordance with the laws of Bermuda governing the winding up of companies. It has been an extremely time consuming liquidation due in part to the number of policyholders and the type of insurance business involved.”Mr Lowe said a major challenge was that BAICL in Bermuda was only a branch of a Bahamian incorporated company.“As a result we have had to deal with the official appointed in the Bahamas on a number of issues, not least of which is the question of what assets of the company as a whole that I could secure for the exclusive payment of Bermuda resident claims,” Mr. Lowe said.“As I have said, the sheer number of policies and policyholders issued to Bermuda residents which we have had to deal with has been a challenge. The first step was to ensure that the health policies be continued without interruption and I was extremely grateful to Argus Group for agreeing to replace BAICL as the insurer for these policies and for facilitating this transfer.“Significant efforts were also made working with other local insurers and the BMA, to find a way in which the remaining policies could be continued. It was a source of considerable regret to all those involved that this was not achievable despite those efforts. Once it became clear that there was no way we could continue those policies, the scheme was put into effect and all premiums paid by policyholders since the beginning of the liquidation were repaid in full.“My principal job as provisional liquidator is to gather in the assets of the company and to distribute them to those who have claims. That is what KPMG and others have been employed to assist with. That is the most important focus for all of us who have been involved. We have now reached the position where we can distribute 35 percent of the agreed policyholder claims to policyholders.“Mr Lowe said as previously stated, a further distribution- “at this point the level of which is unknown” would be made as soon as possible after the sale of the building, which is partially owned by BAICL in Bermuda.“It is notable that the distributions to Bermuda resident policyholders have been made well in advance of payments to policyholders of the company in other jurisdictions in which it operated,” Mr Lowe said. “This is in no small part due to the prior steps taken by the BMA in Bermuda to secure assets exclusively for the benefit of Bermuda resident creditors.“It is regrettable that an anonymous source has sought to try and undermine the efforts that have been made in this way. I am satisfied that the liquidation has been carried out in a proper and professional manner and in accordance with the relevant laws and regulations.”