Liquidators for failed Bermuda-based reinsurer Stockholm Re (Bermuda) Ltd.

(SRB), reported to brokers, policyholders and potential creditors that almost $5 million was collected from reinsurers to March 1996.

SRB and their ultimate parent have a confidential settlement agreement, approved by the Supreme Court as in the best interests of the estate.

The liquidators will continue to process claims and generate reinsurance recoveries which to last March totalled $4,892,049.

Mark Smith of Deloitte & Touche in Bermuda and David Morgan of Touche Ross London are joint provisional liquidators for the property, marine and aviation reinsurer which entered run-off and ceased writing business in March 1994.

International Loss Recovery Services (ILRS), a unit of Alexander Howden Group Claims Consultants, is the sole collection agent.

The first phase of their work included the transfer of documentation and records from brokers, accounts reconciliation and a file audit. ILRS has also created policy and accounting records, implemented credit control monitoring and payment transfer systems to accommodate full security breakdown.

Brokers whose records have been transferred to date account for 80 percent of balances recoverable. The liquidators are still hoping to hear from more policyholders and brokers as regards individual claims and other matters.

Many cedants of SRB are also reinsurers and the effect of the set off at March 31, had liquidators accounting for total assets of $47.3 million, including $29.1 million in recoverable reinsurance, cash and investments of $17.9 million and $300,000 in other assets.

Total liabilities of $157.4 million included loss reserves of $88.6 million, reinsurance balances payable of $67.4 million and $1.4 million dollars in other liabilities. The estimated net liabilities was put at $110.1 million.

Collapsing under a weight of debts, precipitated by a $16 million claim during December 1994, Stockholm Re (Bermuda) Ltd. was placed into compulsory winding up at the start of 1995.