Under these transactions, MBL transferred collateral protection insurance risk to the segregated account owned by a Vesttoo affiliate, which, in turn, was responsible for providing reinsurance collateral to MBL, the company said. Two letters of credit, worth $50 million and $77.75 million, respectively, were issued as collateral backstops in case claims arising from the underlying policies were not honored. Unfortunately, these letters of credit were later discovered to be fraudulent, with an affiliate of Vesttoo listed as the applicant on behalf of White Rock, and MBL designated as the beneficiary.
Global specialty insurer joins list of Vesttoo creditors
