Reinsurance News
Vesttoo
Vesttoo bankruptcy creditors file lawsuit against Aon and China Construction Bank
14th August 2025
The Vesttoo Creditors Liquidating Trust, an independent fiduciary appointed by the U.S. Bankruptcy Court for the District of Delaware, has filed a complaint in the Court against Aon, China Construction Bank, and certain entities and individuals for alleged fraudulent conduct and other wrongdoing that "inflicted devastating losses upon the insurance ... Read the full article
Aon’s White Rock sues Chinese bank over Vesttoo LOC fraud
29th August 2024
White Rock Insurance (SAC) Ltd., global insurance and reinsurance broker Aon's segregated accounts company, has reportedly filed a lawsuit in New York against China Construction Bank as Aon seeks compensation for itself and its clients for damages related to Vesttoo collateral fraud, as first reported by our sister publication ... Read the full article
Aon and Porch enter $30m strategic agreement including release of Vesttoo fraud claims
26th January 2024
Porch Group, a software-driven financial services firm and Aon have entered into a $30 million strategic agreement whereby the re/insurance broker will provide services to the company. Interestingly, the agreement includes the release of all claims Porch had against the broker related to the Vesttoo fraud. This collaboration is with Aon ... Read the full article
AM Best removes Clear Blue ratings from under review with negative implications following Vesttoo issues
22nd November 2023
AM Best has removed from under review with negative implications and affirmed Credit Ratings of Clear Blue Insurance Group Members, noting that the fronting carrier has managed to replace reinsurance capacity and raise $25mn in capital following the Vesttoo scandal. Clear Blue’s ratings were placed under review with negative implications ... Read the full article
Porch announces cash investment in its insurance carrier HOA
28th September 2023
Porch Group has announced a cash investment of $57 million in its insurance carrier subsidiary, Homeowners of America Insurance Company (HOA), in exchange for both a $49 million surplus note from HOA and the acquisition of HOA’s rights to potential claims stemming from the letter of credit fraud connected to ... Read the full article
Vesttoo identifies ‘pervasive and systemic misconduct’ by limited set of execs & third-parties
7th September 2023
Insurtech Vesttoo has now filed its first interim report in the U.S. bankruptcy court for Delaware following its investigation into fraudulent letters of credit (LOC), and says that its scrutiny of the matter has identified that "pervasive and systemic misconduct was engaged in by a limited set of Vesttoo executives ... Read the full article
Porch’s HOA placed under temporary supervision by TDI
6th September 2023
Porch Group has announced that its insurance carrier, Homeowners of America Insurance Company (HOA), has been placed under temporary supervision by the Texas Department of Insurance (TDI) with regard to its exposure to the Vesttoo-linked letter of credit fraud, though has now replaced 84% of reinsurance affected by the issues. Read the full article
Markel joins Vesttoo bankruptcy case over $127.75m fraudulent LOCs
1st September 2023
Markel Bermuda Limited (MBL), part of insurer and reinsurer Markel Group, has been appointed to the statutory committee of unsecured creditors in the U.S. Chapter 11 bankruptcy of insurtech Vesttoo, the company has announced. MBL is a class 4 Bermuda insurer and forms part of Markel's global specialty insurance business. The company ... Read the full article
BMA & White Rock joint action violates automatic stay provision, says Vesttoo
21st August 2023
In a recent filing to the U.S. bankruptcy court, insurtech Vesttoo has said that joint action launched in the Supreme Court of Bermuda by the Bermuda Monetary Authority (BMA) and Aon's White Rock (SAC) Ltd. last week, violates the automatic stay under its Chapter 11 cases. On Friday, the BMA ... Read the full article
Bermuda’s BMA & Aon’s White Rock to jointly pursue insurtech Vesttoo in court
18th August 2023
The Bermuda Monetary Authority (BMA) and White Rock (SAC) Ltd., insurance and reinsurance broker Aon's segregated accounts and transformer vehicle, have launched action in the Supreme Court of Bermuda to pursue "maximum recovery" for re/insureds impacted by the alleged fraud linked to Vesttoo reinsurance deals. A statement released today by the ... Read the full article
Vesttoo saga highlights importance of managing counterparty credit risk: AM Best
18th August 2023
The Vesttoo saga, which entails allegations of fraudulent letter of credit (LOCs), "highlights the importance of carefully managing counterparty credit risk," as it has now become clear that the bank at the heart of the situation grew LOC issuance significantly in 2022, according to analysts at AM Best. Amid the ongoing ... Read the full article
Vesttoo says fraud investigation is advanced & confirms removal of restraining orders
16th August 2023
Israeli insurtech Vesttoo has confirmed that both the federal court in New York and the courts in Israel have removed temporary restraining orders freezing its assets. The company has also stated that the investigation into fraudulent letters of credit (LOCs) is advanced, and that it hopes to be able to ... Read the full article
Vesttoo’s bankruptcy filing stops legal action pursued by Aon’s White Rock
16th August 2023
Insurtech Vesttoo's move to commence Chapter 11 bankruptcy protection in the U.S. has, for now, stopped the legal action against it from Aon's White Rock Insurance (SAC) Ltd. from proceeding, while the temporary restraining order to freeze its assets has been vacated. In court yesterday, counsel for White Rock, which is ... Read the full article
Vesttoo requests court deny injunction, says freezing of assets would destroy its business
15th August 2023
Israeli insurtech Vesttoo has requested that the New York court deny Aon's White Rock Insurance (SAC) Ltd.'s request for a preliminary injunction to freeze its assets, stating that this would ultimately destroy its business by "ending its ability to operate." Last week, White Rock sought an injunction freezing the assets ... Read the full article
Vesttoo commences Chapter 11 bankruptcy proceedings in the US
15th August 2023
Insurtech Vesttoo has now filed for Chapter 11 bankruptcy protection in the U.S., as it looks to protect its assets and aggressively pursue legal action against all parties responsible for the fraudulent letter of credit (LOC) saga. Yesterday, the company announced that along with its subsidiaries, it has commenced Chapter 11 ... Read the full article
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