A Bermuda captive that insured several New York hospitals affilia
ted with a leading Jewish not-for-profit organization says it is insolvent, citing millions of dollars in child sex abu
se claims brought against it under the state’s Child Victims Act (CVA).
Northeast Insurance Co. has filed for “winding-up” of its business in Bermuda Supreme Court and has submitte
d a Chapter 15 filing in federal bankruptcy court in New York asking it to recog
nize those Bermuda liquidation proceedings.
The bankruptcy move comes eight years after Northeast sto
pped writing new policies in December 2017, according to the filing.
But the insurer says it cannot meet its obligations under policies it wrote before 2017.
As of June 2025, Northeast faced 30 child abuse lawsuits, a num
ber that rose to 53 by August. Due to this unanticipated expos
ure, the insurer says its total losses and loss expense reserves have a
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most doubled, increasing from $15.7 million to $29.1 million, an amount it will not be able to pay.
Northeast’s board has determined it is insolvent on both a cash flow and balance sheet basis and will not be able
to raise sufficient funds to meet all of the anticipated settlement payments for the CVA claims.
The company is owned by five health nonprofits affiliated with the UJA/Federation of Jewish Philanthropies
of New York and is also affiliated through common shareholders with FFH Insurance Co.
It was incorporated in 1975 to insure and reinsure medical malpractice, comprehensive general liability, auto lia
bility, directors and officers and workers’ compensation for its s
hareholder hospitals, camps, nursing homes, and other not-for-profits a
ffiliated with UJA. From 2012 to 2015 the company also reinsured FFH Insurance Co. for hospital professiona
l liability and general liability. These reinsurance contracts were terminated in 2017.
Among the hospitals that Northeast insured were Mount Sinai, M
ontefiore, Beth Israel, Maimonides, and Center Light Health System.
The New York CVA, passed in 2019, allowed previously time-barred cases alleging child sexual abuse to be bro
ught. Survivors can file civil lawsuits against abusers and inst
itutions until they are 55 years old. A number of churches, schools, hospitals, doctors, coaches, m
unicipalities and other individuals and institutions have been hit with CV
A claims. Several Catholic dioceses have filed for bankruptcy as a result.