One that everybody has forgotten is the fact that Trenwick Group Ltd split the reserve assets and liabilities into two separate business, the US ReInsurance and UK Reinsurance business.
The UK laws are Re'friendly, and if the policy holders do not make claims against the liabilities then these reserve assets are transfer to the shareholders. The approved off-shore scheme is required by LAW to transfer these assets to the creditors and shareholders. (Creditors are lineup on the Trenwick American side)
Whereas the US are less friendly and the shareholders are less protected.
Why do you think the creditors of Trenwick American was so upset when the parent company Trenwick Group Ltd shift all of the debt to Trenwick America?
The parent company created two sets of Re'books, a GOOD and BAD books, one has the profit and the other has the losses.
The next 8-K will be the TELL ALL for the shareholders.
Good-luck and Hold tight
Dollar Danger, Will Robinson! Dollar Danger!
