High Court finds in favour of insurance companies QBE and Markel

The High Court today found in favour of QBE, Amalfi Underwriting Underwriting Limited and Markel in a joint fraud action those companies brought against former directors and managers/associates of Surety Guarantee Consultants Limited (SGC). Davies Arnold Cooper acted for QBE and Amalfi and Reynolds Porter Chamberlain for Markel.

The judge, Mr Justice Teare, ruled that SGC and individuals associated with it including its directors took "secret profit" through writing surety bonds in the name of the above companies that exceeded the agreed financial limits, failing to account for the premium due "namely, the difference between the sum paid to it as a premium and the premium in respect of which SGC accounted to QBE/Markel".

This secret profit had been paid to "unjustly enrich" those who had undertaken the fraud.

Richard