Final Joint Pretrial Order - Reinsurance Focus

21. At Cackett’s suggestion, the One Year Whole Account was
cancelled mid-term and replaced with a three year treaty through
which the Pool Retros agreed to assume all risks ceded by
Unicover from any facility for which Unicover underwrote (the
“Three Year Whole Account”).
22. Mays alone negotiated and placed the Three Year Whole Account
with Centaur and CRF on behalf of the Pool Retros - - Smith had
no involvement.
23. There was no limit on the amount of business that Unicover was
permitted to cede to the Pool Retros under the Three Year Whole
Account.
24. Cackett informed Pallat and Mays that Centaur had no premium
limits with Sun Life and Phoenix and that he could absorb
increased premium written by Unicover.
25. Cackett obtained outwards retrocessional protection for the
business that Centaur wrote on behalf of Sun Life and Phoenix.
26. At various points during 1998, Cackett informed Pallat and Mays,
at meetings without Smith, that he was happy with the premium
volume ceded by Unicover, but that he was having difficulties with
Centaur’s reinsurance because of premium limits in the agreements
with the outwards retrocessions Centaur had behind Sun Life and
Phoenix.
27. In June 1998, pursuant to Unicover’s direction, Smith replaced
Mays as the lead broker with respect to placing and administering
the Unicover Pool’s retrocessions. Mays continued in his role as
lead pool facilitator responsible for administering pool business
and communicating with the pool members. Smith did not have
this responsibility.
28. Mays served as the lead pool facilitator charged with
communicating with the pool members until December 1998.
29. After Smith replaced Mays as the lead broker responsible for
placing and administering the Unicover Pool’s retrocessions, Smith
kept Mays and Pallat informed about Cackett’s reinsurance issues.
30. At all relevant times, Pallat was aware of all material facts with
respect to the Unicover Pool’s retrocessions and the Pool Retros.
31. Unicover, Rattner Mackenzie and Aon Re all undertook efforts to
help solve Cackett’s retrocessional problems.
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