A Bermuda-based captive insurer that provided coverage for several New York hospitals connected to a major Jewish nonprofit organization has declared insolvency, citing mounting child sexual abuse lawsuits brought under New York’s Child Victims Act (CVA).
Northeast Insurance Co. has filed for a “winding-up” process in Bermuda’s Supreme Court and simultaneously submitted a Chapter 15 bankruptcy petition in federal court in New York to have the Bermuda liquidation proceedings recognized.
This bankruptcy filing comes eight years after Northeast stopped issuing new insurance policies in December 2017 and began the process of winding down existing liabilities. Despite these efforts, the company says it cannot meet its financial obligations on policies issued before 2017.
As of June 2025, Northeast was confronted with 30 child abuse lawsuits, a figure that increased to 53 by August. The unexpected rise in claims caused the company’s total loss reserves and related expenses to nearly double—from $15.7 million to $29.1 million—a sum Northeast admits it cannot cover.
The company’s board has determined that Northeast is insolvent both in terms of cash flow and on its balance sheet and does not have the resources to pay all expected settlements related to CVA claims.
Northeast is owned by five health nonprofits affiliated with the UJA/Federation of Jewish Philanthropies of New York and is linked through shared shareholders with FFH Insurance Co.
Founded in 1975, the insurer was created to provide medical malpractice, general liability, auto liability, directors and officers liability, and workers’ compensation coverage for its shareholder hospitals, camps, nursing homes, and other nonprofits connected to UJA. Between 2012 and 2015, Northeast also reinsured FFH Insurance Co. for hospital professional liability and general liability, but those contracts ended in 2017.
Hospitals insured by Northeast include Mount Sinai, Montefiore, Beth Israel, Maimonides, and Center Light Health System.
The New York Child Victims Act, enacted in 2019, extended the statute of limitations for survivors of child sexual abuse, allowing previously barred claims to be filed until age 55. This legislation has led to a surge in lawsuits against churches, schools, hospitals, coaches, municipalities, and other entities. Several Catholic dioceses have also sought bankruptcy protection due to these claims.