Mutual Risk Management Ltd. says it has settled a lawsuit between it and John Hancock Life Insurance Company.[@@]
“The settlement did not involve any finding of liability,” Mutual Risk, Hamilton, Bermuda, says in a statement about the settlement. “Any recovery from the suit will be used to satisfy MRM’s obligations to holders of its preferred shares.”
No further details about the settlement were available at press time, but the dispute settled around allegations by Mutual Risk that John Hancock, Boston, which now is part of Manulife Financial Corp., Toronto, had stopped making reinsurance payments allegedly due under workers’ compensation reinsurance treaties owned by Mutual Risk.
Mutual Risk announced in November 2004 that a federal judge in Philadelphia had permitted the company to proceed with some claims against Hancock in connection with the workers’ compensation reinsurance dispute.
An arbitration panel ruled in favor of one of Mutual Risk’s subsidiaries, Legion Insurance Company, and awarded almost $7 million in damages along with $21.5 million in interest, costs, attorney’s fees and “consequential damages,” Mutual Risk said in 2004.