An word sovereignty that enclosed dual word carriers, dual offshore reinsurers, several buildings and other insurers’ investments was built by a private equity organisation in partial on controversial resources and is now being dismantled, according to a Wall Street Journal.
And a fall of a Southport Lane word sovereignty is lifting questions about regulation of a upsurge of new money into a word business.
In a Mar 20 article, “Young Financier’s Insurance Empire Collapses,” The Wall Street Journal unprotected a exchange of Alexander Chatfield Burns, a 28-year-old who founded private equity organisation Southport Lane Management LLC in 2010.
Despite carrying no word experience, Burns perceived state regulatory approvals to squeeze word carriers including workers’ remuneration author Dallas National in Texas and personal lines writer Imperial Fire Casualty in Louisiana. Dallas National (which Southport eliminated to Delaware and renamed Freestone) is now in murder in Delaware; Imperial was seized and sole by Louisiana regulators.
According to a Wall Street Journal, waste from a insurers are during $250 million, with some insurers still holding “tens of millions of dollars in other controversial assets.”
Southport Lane also acquired Redwood Reinsurance, a Cayman Islands-based reinsurer. Last Apr it reported it was selling a reinsurance business, Southport Re, to Lennox Investments.
Filings in Delaware Chancery Court lay that Burns switched millions in holds and holds from a companies into a personal comment and transposed those investments with non-publicly traded or barren assets, including a Caravaggio portrayal of capricious authenticity, according to reporters Mark Maremont and Leslie Scism.
The Wall Street Journal pronounced Burns, by his lawyers, has denied any indiscretion or violation of any laws. He also says he never privately advantage financially from Southport’s exchange other than his unchanging compensation.
The categorical Journal article, “Young Financier’s Insurance Empire Collapses,” offers credentials on immature Burns’ personal upbringing and abundant lifestyle, his financial dealings, rascal investigations into his businesses and his family with politicians and regulators.
The Wall Street Journal reported that about a year ago Burns checked into a mental health section during Bellevue Hospital in Manhattan and quiescent from Southport Lane, and that he after changed to South Carolina.
A messenger Journal essay on Mar 23, “Regulators Missed Chance to Block Bad Deals,” raises questions about a opening of state regulators in a box and either states are versed to umpire a upsurge of sidestep account and private equity monies issuing into a word business.
The Journal quotes Louisiana Insurance Commissioner Jim Donelon as observant his group “let it’s ensure down” in 2013 in commendatory Southport’s squeeze of Imperial, that his group seized and sole a year later.
- Young Financier’s Insurance Empire Collapses
- Regulators Missed Chance to Block Bad Deals
- Southport Lane Acquires Dallas National Insurance Co.
- Southport Lane Acquires Louisiana’s Imperial Fire Casualty
- Southport Lane Acquires Redwood Reinsurance
- Imperial Management Corp. Completes National Automotive Insurance Co. Acquisition
- Ratings of Dallas National Insurance Downgraded, Under Review
- A.M. Best: Outlook Negative for Imperial Fire and Casualty Insurance