A Bermuda-based insurance company that covered several well-known New York hospitals has declared it can no longer pay its child sex abuse claims. Northeast Insurance Co. has told the Bermuda Supreme Court it is insolvent and asked a U.S. bankruptcy court in New York to recognize this move.
Northeast stopped selling new insurance policies in late 2017 but continued handling existing claims. Now, it says it doesn’t have enough money to cover all the claims from before that time. The company faced 30 lawsuits under New York’s Child Victims Act (CVA) as of June 2025, but that number has jumped to 53 by August. As a result, its expected losses nearly doubled from $15.7 million to $29.1 million, a gap it says it cannot fill.
The company’s board has confirmed that Northeast is insolvent both in terms of cash flow and overall finances. It won’t be able to gather enough funds to settle the claims linked to the CVA.
Northeast is owned by five health nonprofits connected to the UJA/Federation of Jewish Philanthropies of New York. The company was set up in 1975 to provide insurance for hospitals, camps, nursing homes, and other nonprofit groups affiliated with UJA. It also had ties with FFH Insurance Co., helping reinsure some hospital liabilities until 2017.
Among the hospitals insured by Northeast are big names like Mount Sinai, Montefiore, Beth Israel, Maimonides, and Center Light Health System.
The Child Victims Act, passed in New York in 2019, allowed victims of child sexual abuse to sue their abusers and institutions believed to be responsible, even if the cases were previously too old to be filed. This law opened the door for many lawsuits not only against hospitals but also churches, schools, and other organizations. Some Catholic dioceses have even filed for bankruptcy because of the claims.
Northeast’s insolvency highlights the financial pressure these claims are placing on insurers and organizations tied to abuse lawsuits. It is a reminder of how the CVA continues to affect many sectors in New York and beyond.