The Bermuda Monetary Authority has cancelled the insurance registration of Phoenix CRetro Reinsurance Company Limited, a special purpose insurer, for breaches of the Insurance Act 1978.

The BMA said it was satisfied that the company was in breach of the Insurance Act in four key areas, namely it had not conducted any business within two years of its registration; it had not paid annual fees due; it had not filed statutory financial statements for the years ended 31 December 2013 to 2019 inclusive; and it had not filed statutory financial returns for the years ended 31 December 2013 to 2019 inclusive.

In a statement the BMA said it is taking the action to safeguard the interests of potential clients of the company.

It viewed the breaches “as serious because of their nature and extent, and because they demonstrated systemic weaknesses of the company’s internal controls in all regards”.

The breaches came to light after the BMA received a complaint about the company’s business practices and conduct.

The BMA said that based on the findings of its investigation, it no longer had confidence in the company’s ability to manage its affairs to the benefit of its potential clients or satisfy the minimum criteria as detailed in Schedule 1 of the Act.

In addition, the BMA said the cancellation of the company’s registration highlighted the importance of the Authority’s role in protecting the reputation of the jurisdiction and protecting the interests of clients of the BMA’s regulated entities.