Northeast Insurance Co., a Bermuda-based captive insurer covering several New York hospitals linked to a major Jewish nonprofit, has declared insolvency due to a surge in child sexual abuse claims under New York’s Child Victims Act (CVA).
The insurer has filed for “winding-up” in Bermuda’s Supreme Court and simultaneously submitted a Chapter 15 petition in U.S. bankruptcy court in New York, requesting that the Bermuda liquidation be recognized.
Though Northeast stopped issuing new policies in December 2017 and began winding down its existing liabilities, it now reports being unable to meet obligations on policies written before that date.
By June 2025, Northeast faced 30 child abuse lawsuits, rising to 53 by August. This unexpected influx nearly doubled the company’s loss reserves and related expenses—from $15.7 million to $29.1 million—an amount it says it cannot pay.
The insurer’s board has concluded Northeast is insolvent in both cash flow and balance sheet terms, and cannot raise sufficient funds to cover all expected CVA settlements.
Northeast is owned by five health-focused nonprofits affiliated with the UJA/Federation of Jewish Philanthropies of New York, and is connected via common shareholders to FFH Insurance Co.
Founded in 1975, Northeast was created to insure and reinsure medical malpractice, general liability, auto liability, directors and officers liability, and workers’ compensation for hospitals, camps, nursing homes, and other nonprofits linked to UJA. Between 2012 and 2015, it also reinsured FFH Insurance Co. for hospital professional and general liability, with contracts ending in 2017.
Hospitals insured by Northeast include Mount Sinai, Montefiore, Beth Israel, Maimonides, and Center Light Health System.
The 2019 New York Child Victims Act extended the statute of limitations, enabling survivors to file civil lawsuits until age 55 for previously barred child sexual abuse claims. This law has led to numerous lawsuits against churches, schools, hospitals, coaches, municipalities, and other institutions, with several Catholic dioceses filing for bankruptcy amid the surge.
