Judge Effectively Stays Utah Department of Insurance December 2nd Emergency Order, Pending May Hearing
A-CAP Group (“A-CAP” or “The Company”), a New York-based insurance and financial services company with over $12 billion in assets, today announced that on February 14, 2025 the Utah Insurance Department agreed to stay the December 2nd Emergency Order regarding Sentinel Security Life Insurance Company (Sentinel), Haymarket Insurance Company (Haymarket), and Jazz Reinsurance Company (Jazz). Based on Department’s agreement, Administrative Law Judge Donald H. Hansen moved the continued trial date until May 12, 2025.
The Order details specifically that all prohibitions contained in the December 2nd Emergency Order, such as the Company’s ability to write new business, are to be held in abeyance and not enforced while the stay remains in effect. Furthermore, until resolution of the case, no other directives or orders may be issued that undermine the Court’s Order to stay. Accordingly, Sentinel is open for business and can write new premium without restriction.
“We appreciate the Court’s thorough and careful examination of this matter,” said Kenneth King, Chairman and CEO of A-CAP Group. “It has always been our contention that these disagreements stem from a fundamental misunderstanding over how to value the assets in our portfolio and we are heartened to see the Utah and South Carolina administrative judges are taking the time to get this right.”
On February 13th, 2025, the South Carolina Administrative Law Court ruled in favor of A-CAP’s Atlantic Coast Life Insurance Company (ACL) and Southern Atlantic Re, Inc. (SAR) in their challenge to a December 11, 2024 order from the South Carolina Department of Insurance (DOI). In his decision, Chief Administrative Law Judge Ralph King Anderson, III noted that ACL "maintains positive cash flow" and "has not had difficulty paying amounts owed to either its policy holders or creditors."
Additionally, Judge Anderson III concluded that the valuation report compiled by Harvest Investments, which the South Carolina and Utah Departments relied on, “was diametrically different from the valuation computed by its [A-CAP’s] advisors, Houlihan Lokey and Dundon Advisors. Specifically, the Harvest valuation disregarded the value of the collateral that secured the loans, including valuable commodities such as Boeing Jets, a premier league football club, and other aviation assets.” Judge Anderson III concluded that “Based upon the preponderance of the evidence before me, I find that the Harvest report is not conclusive of the valuation of A-CAP’s assets.”
“I want to thank our partners and stakeholders for their continued loyalty and patience throughout this process,” said King, who also added, “This decision is another step in the right direction, and we will continue to work closely with regulators to resolve this matter. We look forward to getting back to serving our policyholders, agents, and partners without distraction.”
About A-CAP
A-CAP is a holding company owning multiple insurance and financial businesses on its unique and synergistic platform. These businesses include primary insurance carriers, an SEC registered investment adviser, reinsurance vehicles, and marketing organizations. With broad knowledge across the insurance and investment sectors, A-CAP’s management team has diverse experience and provides comprehensive services to policyholders, insurance company clients and capital partners. Launched in 2013, A-CAP is a privately held company with offices located in New York, Charleston, Miami, and Salt Lake City. For more information, visit www.acap.com.
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