February 9, 2010 by Canadian Underwriter
The Joint Liquidators (JLs) of Dyoll Insurance Company Limited have commenced proceedings in the Supreme Court of Jamaica against Aon Benfield Canada ULC (formerly known as Aon Re Canada Inc.), seeking damages amounting to roughly US$19.9 million.
In a Jan. 27, 2010 notice to creditors (posted on Dyoll’s Web site), the JLs accuse Aon Benfield Canada ULC of negligence or breach of contract.
“It is claimed that Aon Re failed to advise upon and procure adequate and available reinsurance to protect Dyoll [now in liquidation] and minimize exposure from possible insurance claims,” the JLs’ notice to creditors says. “As creditors will recall, it was the lack of adequate reinsurance to offset the losses resulting from Hurricane Ivan that resulted in Dyoll’s inability to pay insurance claims in full and led to it being placed in liquidation.”
Aon corporate affairs spokesman David Prosperi said Aon categorically denies the allegations. “All I can tell you with respect to this litigation is that, from the standpoint of the Aon Corporation, we deny the allegations and we intend to fight them vigorously.”
The Grand Court of the Cayman Islands appointed the joint liquidators in 2005. The JLs are partners of Krys & Associates Cayman Ltd.