Cancellation of Registration - 777 Re Ltd. (2024-10-08)

Summary

This is a public enforcement notice from the Bermuda Monetary Authority announcing that it has cancelled the insurance registration of 777 Re Ltd, a class E insurer, under section 41(1)(b) of the Insurance Act 1978. It sets out the regulatory history leading to cancellation and confirms the cancellation has taken effect and been gazetted.

• Background: In November 2023 the Authority imposed regulatory requirements on the company due to concerns over corporate governance, risk management, decision-making and inability to secure capital and liquidity support from its parent.
• Investigation: On 20 November 2023 the Authority appointed a competent person under section 30 of the Insurance Act to investigate the company.
• Urgent Directions: Under sections 32 and 32C, the Authority issued Urgent Directions restricting new business and requiring a De Risking Plan due to breaches of the prudent person principle, minimum criteria for registration, and enhanced capital requirements.
• Compliance and cessation: On 24 May 2024 the company informed the Authority it had completed its De Risking Plan and ceased carrying on insurance business.
• Grounds for cancellation: The Authority cancelled registration citing non-compliance with registration conditions or requirements (s.41(1)(b)(v)), not carrying on business per sound insurance principles (s.41(1)(b)(vii)), failure to meet minimum criteria for registration (s.41(1)(b)(viii)), and cessation of business (s.41(1)(b)(iii)).
• Effective date and publication: The company did not appeal; cancellation took effect on 6 September 2024 and the statutory notice was published in the Official Gazette on 3 October 2024 as required by section 44 of the Insurance Act.

This notice is purely informational, documenting a completed enforcement action against a specific insurer; it does not impose new ongoing obligations on other regulated entities.

Applies to

class E insurer, 777 Re Ltd

Deadlines

• 20 November 2023: Authority issued notice under Section 30 of the Insurance Act appointing a competent person to investigate the company
• 24 May 2024: Company informed the Authority of completion of its De Risking Plan and cessation of insurance business
• 6 September 2024: Cancellation of the company's insurance registration took effect
• 3 October 2024: Statutory notice of cancellation published in the Official Gazette as required by section 44 of the Insurance Act