Connect with us

News

Insurers sue rating agency over exposure to Everton bidder 777

Published

on

Insurers sue rating agency over exposure to Everton bidder 777

Unlock the Editor’s Digest for free

Two US insurers have sued specialist rating agency AM Best in an effort to stop it from downgrading its estimate of their financial strength, in an escalating dispute over their exposure to Everton bidder 777 Partners.

In a lawsuit filed last week, Atlantic Coast Life Insurance and Sentinel Security Life Insurance, part of US insurance group A-Cap, asked a New Jersey court to stop AM Best from “issuing the rating it has prepared” and to force the agency to recalculate it. The planned downgrade would have taken their financial strength rating down three notches, from B++ to B-, they said.

The insurers, which offer life insurance and annuity products to families across America, accused the rating agency of a “fixation” with 777 Re, the Bermuda reinsurer linked to the Miami investment group.

Advertisement

A-Cap has been rushing to take back assets that it ceded to 777 Re through reinsurance transactions, and regulators have pushed it to reduce its exposure to the investment firm, after AM Best raised concerns about the quality of assets held by the reinsurer.

In a separate letter to the court, the plaintiffs’ lawyers argued that the “very existence of [the insurers’] business hangs in the balance”.

The letter also purported to summarise AM Best’s position, saying the agency was refraining from publishing the updated credit rating. That, AM Best reportedly argued, left the market and insurance customers relying on outdated information and left the company at risk of breaching its own policies on prompt publication.

AM Best did not immediately respond to a request for comment.

A-Cap said. “This matter is the subject of litigation and we have already communicated our views on it in the filing referenced. It speaks for itself.”

Advertisement

The A-Cap insurers argued in their suit that AM Best had misunderstood the relationship between the insurers and 777 Re, had taken too dim a view of assets at 777 Re and had not taken into account A-Cap insurers’ progress in reducing their exposure to the reinsurer. They said AM Best had stated in an email that it would apply $1bn in writedowns “largely on assets held outside of the A-Cap insurers’ books”.

The insurers accused the agency of using “flawed methods, improper assumptions, and demonstrably false data” and of a “capricious review process that swung wildly between arbitrary ratings without considering relevant information or co-operating with the A-Cap insurers”.

The insurers said they had provided new information to AM Best relating to the recent “successful recapture” of $510mn of 777 Re-related assets which had been “transferred to a new insurer at par”. In the filing, made on April 23, the insurers said they expected to eliminate their 777 Re exposure by the end of that month.

The scrutiny has taken its toll on 777 Re, which had helped to fund 777 Partners’ investments. The Miami group has stakes in a global portfolio of football clubs, including Genoa in Italy, Vasco da Gama in Brazil, Hertha Berlin in Germany and Standard Liège in Belgium.

777 Partners agreed to buy Everton in September 2023 and had expected to complete the takeover by the end of the calendar year. However, the Premier League has not yet approved its takeover of the Liverpool-based club.

Advertisement

The league has put in place a number of conditions for 777 Partners to meet, including the need to repay £158mn of debt which is owed to lenders including MSP Sports Capital in connection with the new stadium that Everton is building.

In the meantime, 777 Partners has lent more than $200mn to Everton to help meet working capital requirements, said two people briefed on the matter.

News

What the Supreme Court did on the final day of its term

Published

on

What the Supreme Court did on the final day of its term

The U.S. Supreme Court

Tasos Katopodis/Getty Images


hide caption

toggle caption

Advertisement

Tasos Katopodis/Getty Images

The Supreme Court Tuesday upheld the long-established right of children born on U.S. soil to automatic American citizenship, regardless of their parents’ immigration status. In so doing, the court rejected President Trump’s most aggressive attempt to limit immigration in the United States.

Writing for the court majority, Chief Justice John Roberts traced birthright citizenship back to the founding of the nation. Just as the colonists demanded “the rights of Englishmen” more than 250 years ago, he said, Congress, after the Civil War, amended the Constitution to specify automatic citizenship for any child born on U.S. soil.

“Citizenship then and now was the right to have rights”—and the framers of the 14th amendment extended that promise to every free born person in this land. He concluded: “We keep that promise today.”

Advertisement

The vote was 6-to-3, depending on how you count it. Altogether, five justices signed on to the Roberts’ majority opinion. A sixth, Justice Brett Kavanaugh, agreed only that federal legislation enacted in the 1950s grants automatic citizenship for children born in the U.S.

Justice Clarence Thomas wrote the lead dissent, a 91-page opus that agreed with Trump’s assertion that the 14th amendment only applied to former slaves and their descendants. The Thomas dissent added ominously that he “was not sure that “today’s opinion will stand the test of time.” The dissent was joined by Justice Neil Gorsuch, with Justice Samuel Alito writing a separate dissent.

Justice Ketanji Brown Jackson, who, like Thomas is African American, responded to some of the themes in the Thomas dissent.

“Despite his longstanding endorsement of a colorblind society,” she wrote, “Justice Thomas now surprisingly suggests that the citizenship clause was a race-conscious remedial measure relating only to freed slaves.”

Cecillia Wang, legal director of the ACLU, who successfully argued the case at the Supreme Court, said President’s Trump failed attempt to limit birthright citizenship was transparent.

Advertisement
Continue Reading

News

Rep. Tom Kean returns to Congress, says depression is why he went missing for months

Published

on

Rep. Tom Kean returns to Congress, says depression is why he went missing for months

Rep. Thomas Kean Jr., R-N.J., arrives at the U.S. Capitol with his wife Rhonda Kean on June 30.

Anna Moneymaker/Getty Images


hide caption

toggle caption

Advertisement

Anna Moneymaker/Getty Images

New Jersey Republican Thomas Kean Jr. said it was struggles with depression that kept him away from Congress for nearly four months with no explanation to his constituents.

Kean last voted on March 5th, missing numerous votes and other appearances on Capitol Hill since. In April, House Speaker Mike Johnson told reporters he had spoken to Kean and that he was dealing with an undisclosed medical issue. Kean was not spotted until recently at his New Jersey home.

Speaking from the House floor on Tuesday, the second term lawmaker said he had checked into a hospital for testing several months ago after health concerns, and was subsequently diagnosed with depression.

Advertisement

“Talking about myself has never come naturally,” Kean said. “But I believe that I owe an explanation to the people of New Jersey’s seventh district, to my colleagues in this chamber and to the American people for my absence.”

Kean said he originally did not think his diagnosis would result in a long-term absence. Doctors recommended he remain in the hospital to address the illness, and it was his fastest route to recovery, he said.

“It is physical. It is emotional,” he said. “And until you experience it yourself, it is difficult to fully understand how powerful this illness could be.”

Kean said he miscalculated how long he would be away, estimating it would be a matter of weeks. However, he said like the roughly 48 million Americans who have battled the illness, he learned there is no timeline for recovery.

“I am grateful that I accepted help,” Kean said. “Today I stand before you healthier, stronger and excited to return to the work that I love.”

Advertisement

Kean’s absence proved a struggle for House Republicans, who contend with a razor thin majority to pass party priorities. For weeks, Kean and his office declined to share additional details on why he was away, feeding rumors and speculation and raising interest in a member known for his privacy.

Continue Reading

News

Michigan governor threatens to pull troops from D.C. if used for Trump task force

Published

on

Michigan governor threatens to pull troops from D.C. if used for Trump task force

Members of the National Guard stand in front of a large image of U.S. President Donald Trump that hangs from the the Robert F. Kennedy Department of Justice Building on May 18, 2026 in Washington, D.C.

Andrew Harnik/Getty Images North America


hide caption

toggle caption

Advertisement

Andrew Harnik/Getty Images North America

WASHINGTON, D.C. — In a strongly worded letter to the head of Michigan’s National Guard, Gov. Gretchen Whitmer reiterated troops from her state are only to be used for operations surrounding America 250 celebrations in Washington, D.C., and not for President Trump’s long-running — and controversial — joint task force to fight crime. She said that she would pull her troops from the city if that is not the case, in the letter obtained by NPR.

“Please take all necessary measures to ensure the Michigan National Guard is only supporting the narrow and limited America 250 Mission and is in no way supporting the D.C. Safe and Beautiful Mission,” wrote Gov. Whitmer, referencing the official name for the federal task force.

Trump deployed hundreds of troops to Washington, D.C., in August of 2025, in what experts said was a stunning departure from governing norms. He said he did so to address rampant crime, despite declining crime rates at the time. The number of troops in the city has increased over time to more than 4,800 from Washington, D.C. and almost two dozen states, which until recently were exclusively Republican-led.

Advertisement

Michigan — which has 161 guard members currently in the city — is one of four Democratic-led states that sent members of their National Guard to D.C. in recent weeks, ahead of an influx of tourists for America 250 celebrations. North Carolina and Kentucky each sent one member of their guard, while Minnesota sent more than a hundred last week.

Kentucky confirmed to NPR Monday that it had recalled its one guard member over the weekend, after that member was “diverted to the task force by the federal government without the knowledge or consent of Gov. Beshear of the Kentucky Guard,” Scottie Ellis, a spokesperson for Gov. Beshear, wrote to NPR in an email.

When contacted by NPR, spokespeople for each respective Democratic governor’s office made it clear that their guard members were sent to help specifically with America 250, not for law enforcement purposes as part of the larger ongoing federal joint task force operation. All four states have been clear about their opposition to the Trump administration’s ongoing deployment of National Guard troops to D.C., filing an amicus brief in support of litigation challenging it as recently as May.

Continue Reading
Advertisement

Trending