Dennis Lomas and Michael Bright knew about ‘payback’ reinsurance deals between Independent and its reinsurers, said a prosecution witness

A risk analyst with Aon said that both Dennis Lomas and Michael Bright knew about ‘payback’ reinsurance deals between Independent and its reinsurers, the Independent Insurance trial was told this week.

Questioned by prosecutor Andrew Baillie QC, the witness, Elizabeth Holloway, said Aon Risk Consulting provided risk analysis services and also drafted slips and contracts on Independents behalf.

“They would tell us what they wanted and it was out job to go and get it,” said Holloway.

During the court's examination of emails and other documents Holloway described how the reinsurance contracts contained an element of ‘payback’ to Ireco, Independent's reinsurance partner.

Asked who was privy to the terms of the contracts, Holloway said: “I would have thought Dennis Lomas would have been aware and Michael Bright would have had some awareness, but I don’t know how much.”

Under cross-examination Holloway admitted that Independent was unusual in that it pioneered long-term relationships with its reinsurers.

Facing questions from Bright’s defence counse,l Ian Winter QC, the witness also conceded that the deals were part of a healthy long-term working relationship.

The three former directors of Independent Insurance Group—Michael Bright, Philip Condon and Dennis Lomas—are charged with conspiracy to defraud. They deny the charges.

The trial continues.