The collateralized insurer class of company that was set up by under-pressure insurtech Vesttoo is now being liquidated, with the company stating that it has opted to focus its activities “on a limited number of high-quality and large markets.”
Vesttoo originally registered the collateralized insurer class of company Vesttoo Alpha P&C Ltd. in Bermuda back in July 2022, with the company aiming for it to play a pivotal role in its platform and offering of P&C insurance returns to investors.
Today, regulator the Bermuda Monetary Authority (BMA) published a notice stating that it had issued proceedings in the Supreme Court of Bermuda, Commercial Court jurisdiction, to appointment Joint Provisional Liquidators (JPLs) for winding-down Vesttoo Alpha P&C Ltd.
Charles Thresh and Michael Morrison of global advisory firm Teneo’s Bermuda branch, have been appointed as the JPLs of Vesttoo Alpha P&C Ltd.
Vesttoo issued a statement, with a spokesperson saying, “As part of Vesttoo’s business focus moving forward after the recent events, the company’s management has decided to focus its activities on a limited number of high-quality and large markets.
“As part of this restructuring, Vesttoo is liquidating its collateralized insurer in Bermuda – but continues to operate its branches in New York, London and other territories.
“Vesttoo’s main activity and its core members, which includes an experienced team of 50 people, continue to act vigorously for the benefit of the company’s customers and partners.”
It’s not known at this stage whether the Vesttoo Alpha P&C Ltd. collateralized insurer was used in any transactions that had collateral behind them that was linked to the alleged letter of credit (LOC) fraud.