Arrowood Indemnity Company, the runoff entity for Royal Indemnity and Royal Globe (collectively known as Royal), was declared insolvent by the Delaware Commissioner of Insurance on November 6, 2023. The decision to declare Arrowood insolvent was executed through the submission of a complaint for the imposition of a liquidation and injunction order with an imposed bar date set at January 15, 2025.
The announcement of Arrowood’s insolvency potentially impacts thousands of policyholders who are seeking insurance recovery. It is essential to note that after the aforementioned bar date by the commissioner, no claims against Arrowood will be entertained. As such, Arrowood policyholders are advised to weigh their options and actions carefully as they navigate this challenging situation.
It’s important to understand that declaring insolvency means the insurer, in this case Arrowood Indemnity Company, is unable or likely to be unable to meet its insurance obligations. Its assets are now expected to be liquidated to meet claims submitted by policyholders, but these assets can often fall short of completely satisfying all outstanding liabilities. This can leave policyholders and creditors in a difficult situation.
In light of this development, businesses and individuals linked to Arrowood Indemnity should consult with legal and insurance professionals to understand the implications and establish the best course of action moving forward.
The legal team that announced this news, Perkins Coie, is expected to keep all interested parties updated on the proceedings. Any additional news on this case will be communicated in a timely manner, ensuring the affected parties have the most accurate and recent information.