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

Summary

This is a public enforcement notice from the Bermuda Monetary Authority announcing the cancellation of the insurance registration of 777 Re Ltd, a class E insurer, under section 41(1)(b) of the Insurance Act 1978. It is purely informational and historical, documenting the enforcement process that led to cancellation rather than imposing any new ongoing requirement on other entities.

• Background: In November 2023 the Authority imposed regulatory requirements on the Company due to concerns over corporate governance, risk management and inadequate capital and liquidity support from its parent, and changed the composition of its board.
• Investigation: On 20 November 2023 the Authority issued a notice under section 30 appointing a competent person 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 non-compliance with the Insurance Act and Insurance Code of Conduct, including breaches of the prudent person principle and Minimum Criteria for registration.
• Compliance and cessation: On 24 May 2024 the Company informed the Authority it had completed its De-Risking Plan and had 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 in accordance with sound insurance principles (s.41(1)(b)(vii)), failure to fulfil Minimum Criteria for registration (s.41(1)(b)(viii)), and cessation of business (s.41(1)(b)(iii)).
• Effect and publication: The Company did not appeal; cancellation took effect on 6 September 2024 and was published in the Official Gazette on 3 October 2024 as required by section 44.

Applies to

insurers (class E)

Deadlines

• 6 September 2024: Effective date of the cancellation of 777 Re Ltd's insurance registration.
• 3 October 2024: Statutory notice of cancellation published in the Official Gazette as required by section 44 of the Insurance Act.