Clear Blue Insurance Co. and Aon plc will have until June 21 to present motions in Clear Blue’s lawsuit again the broker in a case related to the bankruptcy of insurtech Vesttoo Ltd.
Defendants Aon plc and Aon Insurance Managers (Bermuda) Ltd. have an extended May 6 deadline to move to dismiss or respond to an amended complaint filed by plaintiffs Clear Blue Insurance Co., Clear Blue Specialty Insurance Co. Highlander Specialty Insurance Co. and Rock Ridge Insurance Co. in the New York state Supreme Court, according to a court document.
Plaintiffs’ deadline to respond to any motion to dismiss filed by the defendants is extended to June 6, the document said. Defendants’ deadline to reply to plaintiffs’ opposition is extended to June 21.
Clear Blue sued Aon in New York state court for alleged damages connected with letters of credit issued by Vesttoo involving Aon and its White Rock entity.
In a New York Supreme Court complaint, Clear Blue and related entities allege Aon and its Bermuda-based segregated cell entity White Rock are liable for damages in the Vesttoo case.
Clear Blue seeks to recover damages from Aon for “hosting a rogue operation on its Bermuda-based platform in clear violation of law, regulation, contract and standard market practice,” Clear Blue said in its complaint.
“Clear Blue entered into a series of reinsurance transactions with and/or involving Aon, its wholly owned subsidiaries Aon Insurance Managers, White Rock and White Rock’s various segregated accounts, causing material financial, regulatory and reputational damage to Clear Blue.”
Aon and its entities could have stopped the Vesttoo fraud “dead in its tracks,” but “facilitated it by removing all the statutory, regulatory and contractual safeguards and ignoring standard market practice,” the complaint said.
“This complaint is meritless,” an Aon spokesperson said in an email to BestWire at the time. “Vesttoo has publicly admitted that its executives conspired with third parties in a highly sophisticated and elaborate fraud. As one of the victims of that fraud, Aon is focused on continuing our work to develop a path forward for all affected parties.”
The Supreme Court of Bermuda recently sanctioned a bankruptcy plan filed by Vesttoo creditors and approved the joint provisional liquidators of Aon’s White Rock Insurance SAC to remove objections to the Chapter 11 plan involving White Rock and other parties.
The Bermuda court’s decision, filed with the U.S. Bankruptcy Court for the District of Delaware, allows the JPLs to unconditionally withdraw their objections to previously proposed versions of the bankruptcy settlement plan and cedent settlements with the Official Committee of Unsecured Creditors of Vesttoo, appointed in the Vesttoo Chapter 11 case involving White Rock. The liquidators are also authorized to consent to confirmation of the plan.
The liquidators are also allowed to consent to cedent settlements with the committee and JPLs for White Rock involving insurers Clear Blue, Chaucer, Beazley plc., Markel Corp. and Porch, according to the Bermuda court ruling.
Underwriting entities of Clear Blue parent Pine Brook Capital Partners II (Cayman) have current Best’s Financial Strength Ratings of A- (Excellent).