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White Mountains Insurance Group, Ltd. Message Board

  • shininglamp_blues shininglamp_blues Aug 31, 2005 5:43 AM Flag

    Florida takes out Sirius International

    The first domino fell over.

    This week Consent Orders were entered into between Sirius International Insurance Corporation, IMG, and the Office of Insurance Regulation of the State of Florida. The Orders lay it out that both companies must stop writing business in Florida until they are licensed �.. and that isn�t going to happen anytime soon.

    Sirius International got the chop because they sold unlawful business in Florida for years, and defied the regulators.

    What were WTM thinking last year when they bought Sirius from ABB, didn�t anybody do their due diligence and ask, �Hey, Is Sirius licensed in every state where it does business?� What is going on with the Sirius management? With no eligibility they kept writing business in the face of a formal investigation and despite receiving investigative subpoenas. Is that arrogance or stupidity?

    Irrespective of what others may say on this board about this being a local issue caused by petty regulators the fact is that insurance carriers must be licensed in the states where they do business �and Sirius International isn�t. That�s not a bean counting issue; it�s a major set-back.

    BTW, I wasn't hiding away, I�m sick and just now rehabbing after an acute attack.

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    • My simple answer:

      It's not material or it would have been reported (under Sarbanes-Oxley sanctions if not reported and material).

    • Excuse me, let's ask the obvious; do you accept, or not, that Sirius International is now banned from Florida, and is that an important issue for them, or not?

      And do you accept, or not, that the Florida ban could have ramifications in other places and ways?

      Simple really, I would have thought.

    • Having a hard time cooking that humble pie?

      • 1 Reply to deepvalue2003
      • Obviously you didn't take the trouble to read my post properly.

        I'll try again, with slightly more explanantion.

        Sirius International is now prohibited from writing any insurance in the State of Florida - PERIOD.

        They do not have a Certificate of Authority or other eligbility to write business there. Should they write any further business, including renewals, each piece of underwriting would constitute a felony and a fraud, according a reading of the statutes referred to in Order by the Florida regulators, who drafted the Order.

        The terms of the Order, including a waiver of the right of appeal, was agreed by the Sirius International President, who signed it in August.

        Seems to me that's 'Florida taking out Sirius International'; your 'hunble pie' remark was completly incorrect.

        Sirius is now banned from writing insurance in one of the USA's prime insurance markets.

 
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