A-CAP Group has filed a motion to stay the Utah Insurance Department’s Verified Petition dated March 21, arguing the petition undermines a prior court order and attempts to bypass ongoing legal proceedings.
A New York-based insurance and financial services firm managing more than $12 billion in assets, A-CAP is in the hot seat after contending the department’s filing attempts to circumvent the February order and exerts undue pressure on the company.
The dispute centers on a Feb. 14 court order, which stayed an earlier emergency order issued by the Utah Insurance Department on Dec. 2, 2024. That emergency order had restricted the operations of three A-CAP-affiliated entities: Sentinel Security Life Insurance Company, Haymarket Insurance Company, and Jazz Reinsurance Company.
The court’s stay suspended all prohibitions, including the companies’ ability to conduct new business, and barred further regulatory directives while litigation is pending.
In a statement, A-CAP described the department’s actions as retaliatory and based on unsubstantiated allegations.
The company asserts that the issues raised in the March petition mirror those already under review in a consolidated proceeding scheduled for trial on May 12-16, 2025. Independent advisors have previously reviewed and refuted similar claims, according to A-CAP.
A-CAP also highlighted a recent ruling from the South Carolina administrative law court, which affirmed the company’s financial strength. The group reported a profitable 2024 and maintains that Atlantic Coast Life and Sentinel Security Life continue to meet all policyholder obligations.
Founded in 2016, A-CAP reports a capital increase of more than $483 million, including over $270 million contributed to its insurance subsidiaries. In Utah, capital contributions to its domiciled insurers amount to $171 million.
The company said it would cooperate with regulators while seeking resolution through the courts.
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