A-Cap provides update on life insurers after tangling with regulators

By Staff Reports

After battling with regulators in Utah and South Carolina for much of the past 18 months, Advantage Capital and its life insurance subsidiaries are seemingly back to business as usual.

In late April, the Utah Insurance Department agreed to pause its litigation effort to take control of A-Cap insurers Sentinel Security, Haymarket Insurance Co., and Jazz Reinsurance Co. On Friday, May 23, Judge Amber M. Mettler signed an order to dismiss the case, according to Utah court records for the Third Judicial District.

South Carolina regulators are in a similar place with Atlantic Coast Life Insurance Co., another A-Cap insurer domiciled there. In a Feb 13 decision, South Carolina Administrative Law Judge Ralph King Anderson III sided with A-Cap. Anderson rebuked regulators and rejected the S.C. insurance department’s conclusion that Atlantic Coast is in financial distress.

In light of these decisions, A-Cap released a update last week on its life insurers:

“We are happy to have this period of uncertainty behind us and we remain fully focused on doing what we do best, which is providing best-in-class financial solutions for our customers, policyholders and annuity owners nationwide,” said Kenneth King, chairman and CEO of A-CAP Group. “I want to thank our partners and stakeholders for their continued loyalty and patience throughout this process and we look forward to constructively engaging with our regulatory counterparts as we position A-CAP for a return to growth.”

Concurrently, Atlantic Coast Life and Sentinel Security Life Insurance Co., each released recent financial highlights. As of the first quarter of 2025, Sentinel and Atlantic Coast Life have total adjusted capital of $201,910,670 and $139,750,977, respectively, and capital and surplus of $142,174,011 and $118,242,417, as reported in recent statutory financial filings.

King added that “despite challenges, 2024 was a financially successful year for A-CAP, Sentinel and Atlantic Coast Life, which is a testament to the resiliency, dedication and capabilities of the entire A-CAP team.” He emphasized that “Sentinel and Atlantic Coast Life have maintained sufficient capital and continue to operate profitably while meeting all policyholder and financial obligations.”

Product updates and rates

Atlantic Coast Life and Sentinel each increased the rates offered in their multi-year guaranteed annuities in April and are in the process of updating the rates and benefits of their fixed-indexed annuities to once again offer the leading rates and benefits that agents and annuity owners have come to expect from the two carriers, the release said.

A-CAP has a "proven track record of effectively managing its asset portfolio" and following the recent successful divestiture of Standard de Liège SA, the company continues to demonstrate its ability to deliver solutions that create tangible benefits for all stakeholders—including Atlantic Coast Life and Sentinel annuity owners and policyholders, the release said.

This transaction builds on prior successful transactions involving Everton FC and Melbourne Victory FC. Moving forward, A-CAP will remain focused on evaluating strategic alternatives for remaining soccer assets alongside its team of professional advisors. In addition to effectively managing its portfolio, A-CAP continues to work with Moelis to conduct a strategic capital raise to fund future growth and expansion, the release said.

“With these matters behind us, we have removed uncertainty from the equation and will continue the process of raising capital to help fuel the next stage of growth for A-CAP, Atlantic Coast Life and Sentinel,” King said. “The future is bright for A-CAP and we are beyond excited to get back to serving our customers 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, www.acap.com.