Insurance broker and Bloxham in mediation

The liquidators of stockbroking firm Bloxham have agreed to mediation with the firm’s former insurance broker, Robertson Low, of their claim for more than €15m damages arising from Bloxham allegedly being “chronically underinsured”.

Although the firm paid €16m in the settlement of claims by clients related to certain Saturn Dresdner investment bonds, the total sum recovered from its insurers was a 10th of that, the High Court heard.

The liquidators claim Bloxham believed that, in 2007, it had insurance cover on the basis of up to €3m a claim but that belief turned out to be “cruelly mistaken” when the total cover for all claims was actually €1.275m.