Newpoint sues BMA for ‘rejecting acquisition of Citadel Re’

Newpoint Financial Corp has filed a lawsuit in California against the Bermuda Monetary Authority and two of its employees.

Delaware-domiciled Newpoint is suing for damages of $25 million over allegations relating to its application to acquire a controlling interest in Bermuda’s Citadel Reinsurance Company. The BMA rejected its application on 30 September.

The lawsuit names the BMA, its director of insurance supervision, Gerald Gakundi, and its deputy-director for enforcement, Susan Davis-Crockwell, as defendants.

According to OffshoreAlert, Newpoint argued that the BMA had “falsely and maliciously” claimed that Newpoint was not “fit and proper” to be the controller of Citadel.