Arrowood Indemnity – The Latest U.S. Insurer to Enter Liquidation
On November 8, 2023, Arrowood Indemnity was placed into voluntary liquidation in Delaware. Arrowood was the runoff entity for Royal Sun Alliance Insurance Group, and had been in operation for about twenty years, resolving over 100,000 claims.
The company had previously been declared insolvent by the Delaware Insurance Commissioner. Arrowood's president, Dennis Cahill, attributed the liquidation in part to the enactment of child victim act statutes and the continued re-emergence of claims related to legacy insurance policies.
A link to yesterday's Court of Chancery Liquidation and Injunction Order is here. The Order stays all proceedings against Arrowood for 180 days, and sets a bar date of January 15, 2025, for submission of claims. The liquidation order will also trigger activation of state guaranty funds.
For more information, please contact Timothy S. Martin (email@example.com, 302.467.4509), Rochelle Gumapac (firstname.lastname@example.org, 302.467.4531), Frank J. Perch, III (email@example.com, 215.864.6273) or a member of the Insurance Coverage and Bad Faith or Financial Restructuring and Bankruptcy practice groups.