March 28, 2025 Newswires

A-CAP Counters Desperate Attempt by Utah Insurance Department to Distance Itself from its Faulty Allegations

Business Wire

Department’s Petition Violates Stay Order Issued on February 14^th, 2025

SALT LAKE CITY--(BUSINESS WIRE)--
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 it has filed a motion to stay the Utah Department of Insurance’s (“Department”) March 21^st, 2025, Verified Petition that attempts to subvert the Court’s February 14^th Order.

On February 14, 2025, the Utah Insurance Department agreed to stay the December 2^nd, 2024, Emergency Order regarding Sentinel Security Life Insurance Company, Haymarket Insurance Company, and Jazz Reinsurance Company. The Order detailed specifically that all prohibitions contained in the 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.

“Rather than accept the consequences of the process he initiated, the Commissioner is now going to extreme lengths to punish A-CAP for exercising its constitutional, statutory, and administrative rights to contest his fallacious assertions, which rely on unsupported allegations,” said Kenneth King, Chairman and CEO of A-CAP. “It truly cannot be understated how financially harmful the Department’s irresponsible actions have been – to A-CAP, our policyholders, annuity owners, and, ultimately Utah’s taxpayers, who are funding the Department’s theatrics and false narratives. We firmly stand by our actions and belief that our companies remain strong, and we look forward to rebutting the Department’s claims in court.”

A-CAP believes that the trial scheduled for May 12-16^th, 2025 is sufficient to adjudicate the claims made in the Verified Petition, given it relies on the same allegations as the Consolidated Proceedings, which have already been refuted by independent advisors. The Company’s motion emphasizes that the Department’s latest action is being brought for no other purpose than to circumvent an on-going proceeding with new outside counsel, harass A-CAP, and publicly disparage the Company’s name.

On the heels of a vindicating South Carolina Administrative Law Court Order that ruled in favor of A-CAP's strong financial position, A-CAP is well-prepared and eager to expeditiously resolve these matters in court, wherever that venue may be. The Company recently closed a successful and profitable 2024, its financials are robust, capital has increased, and Atlantic Coast Life Insurance Company and Sentinel Security Life Insurance Company continue to meet all policyholder commitments and obligations.

Mr. King continued, “A-CAP remains dedicated to serving policyholders and annuity owners with excellence and our financial stability has never wavered. Since the company’s inception, A-CAP has consistently delivered excellent investment yields through its asset management arm, allowing it to better serve its insurer’s policyholders and annuity owners through premier insurance products. Throughout this process, we have worked cooperatively and collaboratively with the Department, and it is in the best interest of all parties, including policyholders, annuity owners and the Utah taxpayers to allow the legal process to work efficiently to bring these matters to conclusion. We are confident in our position and intend to do everything in our legal power to help facilitate that process.”

Since 2016, A-CAP Group’s capital has increased by over $483 million – during that time A-CAP has contributed over $270 million in capital to the insurance companies, including Atlantic Coast Life and Sentinel. In Utah, Sentinel and the other Utah domiciled insurance entities’ capital has grown by over $300 million during this same period – $171 million of which has been contributed capital by A-CAP.

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.