Dorset Peak Solutions Sues Oxford Risk Management over Alleged Captive Insurance Misconduct

Dorset Peak Solutions LLC (DPS) has filed a lawsuit in the Delaware Court of Chancery against Oxford Risk Management Group LLC (ORMG) and several affiliated entities, alleging a scheme to transfer insurance liabilities without proper disclosure to policyholders. The suit claims that ORMG acted in bad faith by moving risks from its captive insurance pool to a newly formed Bermuda-based entity, allegedly reducing financial protections for policyholders while preserving ORMG's "A" rating from AM Best.

According to the complaint, DPS and its clients joined the ORMG pool under assurances of a stable captive insurance structure backed by over $1 billion in assets. However, the lawsuit alleges that when ORMG learned its rating was at risk in early 2024, it implemented a reorganization that transferred certain policies—including those of DPS clients—to Structured Risk Mitigation Solutions Ltd. (SRMS), a newly established Bermuda insurer. The lawsuit claims this shift significantly reduced available reinsurance protection, allegedly from over $1 billion to approximately $170 million. 

DPS argues that this move violated contractual agreements, state insurance regulations, and securities laws by altering policyholder rights without consent. The lawsuit seeks injunctive relief to unwind the transactions, restore the original insurance arrangements, and recover damages. ORMG has not yet publicly responded to the allegations.