Alabama-based Arsenal Insurance Management, LLC (Arsenal) has filed for bankruptcy in United States Bankruptcy Court for the District of Delaware on January 23, 2023. It’s affiliated companies Arsenal Health LLC and Arsenal Intermediate Holdings LLC also filed for bankruptcy on the same day.
While much of the reporting on the Arsenal has focused on the firm’s large portfolio of captives claiming the 831(b) tax election—a designation that has come under increased industry and IRS scrutiny in recent years—Arsenal was also one the first captive managers to manage or form risk retention groups in the state of Alabama.
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