A constant theme throughout the document is that TAC raped the rest of the organization. Maybe it had to, at the point of the proverbial gun.
Trenwick America Corp (TAC) as noted is a holding company. It's insurance underwriting subsidiaries were the primary business of the entire shootin' match, and they were primarily regulated by the Connecticut Department of Insurance. As I had continuously posted on the Yahoo board way back then, the insurance commissioner's job is to protect the interests on the policyholders and claimants, and that there NO responsibility to shareholders or creditors of the holding company (such as bond holders).
It was interesting at the time, but the Connecticut insurance commissioner never did formally seize TAC's underwriting subsidiaries. This is because (a) the department's resources are and were stretched a bit thin; and (b) because Trenwick agreed to an orderly liquidation. But because of the oversight of the insurance department, Trenwick essentially had to do all it could to marshal assets to support policyholders and claimants. Failure to do so would have invited the direct intervention of the insurance commissioner, an action that potentially could have hurt TGL and LSH even more that LaSalle Cover was claiming they had been hurt by 2005.
AI
