The Roman Catholic Diocese of Brooklyn has filed a lawsuit against the run-off operations of Royal & SunAlliance USA Inc. and its directors and officials at the state court of North Carolina and has disputed the owners' alleged waste of hundreds of millions of dollars in executive salaries and other expenses. its ability to pay potential liability costs related to child abuse allegations.
RSA USA's sale to Charlotte, North Carolina-based Arrowpoint Capital Corp., a vehicle established by its RSA USA management team, was approved by the Delaware Insurance Commissioner in 2007, followed by a runoff.
The diocese, a policyholder at the Arrowwood Indemnity Co., formerly known as the Royal Indemnity Co., had purchased many primary and surplus commercial public liability insurances between 1
In 2019, then New York-Gov. Andrew Cuomo signed the New York Child Abuse Act, which extended the statute of limitations for child abuse victims to filing claims and resulted in the diocese receiving more than 500 such claims, according to the disputes.
The lawsuit alleges that the defendant "manipulated" Arrowood's statutory financial results incorrectly, allowing the company to divert "well over" $ 500 million over the past "ten plus" years, causing its statutory impairment and threatening its capabilities. to fulfill the obligations of their policyholders.  The lawsuit, which states the diocese is one of hundreds of Arrowood policyholders, prosecutes the defendants "has systematically and unlawfully transferred hundreds of millions of dollars from Arrowood under signs of grossly inflated salaries, deferred compensation plans, management plans, expenses, health care expenses."
It states that the actions of the defendants mean that the diocese will not be able to fully defend its defense, see and liability, and it will at best receive a penny in the insurance coverage to which it is entitled.
The trial, which was brought last week, prosecutes the company for unfair or misleading acts, among other things, and seeks at least $ 500 million in damages and the creation of constructive confidence in recovering funds from the insurer.
An Arrowpoint spokesman had no comment.