A Bermuda-based captive insurer covering multiple New York hospitals affiliated with a prominent Jewish nonprofit has declared insolvency, citing a growing number of child sexual abuse claims filed under New York’s Child Victims Act (CVA).
Northeast Insurance Co. has initiated a “winding-up” proceeding in Bermuda’s Supreme Court and concurrently filed for Chapter 15 bankruptcy in New York federal court, seeking recognition of the Bermuda liquidation process.
This bankruptcy filing comes eight years after Northeast ceased issuing new policies in December 2017 and began winding down its existing liabilities. However, the insurer now reports it cannot meet obligations tied to policies issued before that date.
By June 2025, Northeast was facing 30 child abuse lawsuits; that number climbed to 53 by August. The unexpected influx of claims caused the company’s loss reserves and loss expense provisions to nearly double—from $15.7 million to $29.1 million—an amount Northeast says it cannot cover.
The company’s board has determined that Northeast is insolvent both in terms of cash flow and balance sheet, and that it cannot raise enough funds to cover all anticipated CVA claim settlements.
Owned by five health-focused nonprofits connected to the UJA/Federation of Jewish Philanthropies of New York, Northeast is also affiliated through shared shareholders with FFH Insurance Co.
Established in 1975, Northeast was created to insure and reinsure medical malpractice, general liability, auto liability, directors and officers liability, and workers’ compensation policies for its shareholder hospitals, camps, nursing homes, and other UJA-affiliated nonprofits. From 2012 to 2015, it also reinsured FFH Insurance Co. for hospital professional and general liability, before terminating those contracts in 2017.
Hospitals insured by Northeast include Mount Sinai, Montefiore, Beth Israel, Maimonides, and Center Light Health System.
The New York Child Victims Act, passed in 2019, reopened the statute of limitations for survivors of child sexual abuse, allowing previously barred claims to be filed until the survivor turns 55. This law has triggered a wave of lawsuits against churches, schools, hospitals, municipalities, coaches, and other institutions, leading several Catholic dioceses to seek bankruptcy protection.