Odyssey Re has failed in its US civil law suit alleging racketeering against Bermuda-based Lloyd's broker Stirling Cooke Brown.
In a writ filed in New York last March, London-based Odyssey Re suggested Stirling Cooke Brown had acted improperly in pocketing up to £9m in inappropriate management fees and brokerage commissions.
The case centred on Odyssey Re's allegation that it had been "deceived into providing grossly underpriced reinsurance". This it said allowed the defendants to underprice their competitors in the US while Odyssey Re acted as reinsurer for "grossly underpriced business" that led to overwhelming losses.
Stirling Cooke Brown for its part has consistently and vehemently denied these charges. Last Tuesday it was vindicated when a New York court ruled there was no case to answer since Stirling Cook Brown owed no liability to Odyssey Re under US federal law.
Stephen Crane, president and chief executive of Stirling Cooke Brown, said: "Odyssey's charges, which we were confident had no merit, were a costly distraction."
He added that with the conclusion of Odyssey's legal action Stirling Cooke Brown planned to "return to significant levels of profit".
