Dorset Peak Solutions (DPS) has filed for a restraining order to block Oxford Risk Management Group (ORMG) from proceeding with a restructuring of its Bermuda-based captive insurance operations. The move is part of a US$1.2 billion lawsuit brought by DPS, which claims the restructure could significantly weaken financial protections for policyholders. DPS, a policyholder and reinsurance counterparty to ORMG-administered captives, alleges it has a direct interest in the financial soundness and management of these structures. According to court documents filed in the Delaware Chancery Court on 28 March, ORMG intends to transfer a portfolio of judgment preservation and financial guarantee-related risks to Structured Risk Mitigation Solutions (SRMS), a newly formed insurer in Bermuda. DPS alleges the transfer would slash reinsurance coverage from over US$1 billion to approximately US$170 million, leaving policyholders exposed. The lawsuit further claims that ORMG has not acted in the best interests of policyholders and is seeking to offload liabilities without appropriate oversight. In a statement, ORMG says it “strongly disagrees with the allegations in the lawsuit and has acted appropriately at all times”.
