Arsenal Insurance Management, LLC, an Alabama-based captive manager, has petitioned for bankruptcy in the District of Delaware’s Bankruptcy Court.
Arsenal, formerly owned by TaylorChandler, was rebranded in 2015 and had a presence in multiple US domiciles including Vermont, Texas, Georgia and Tennessee.
Arsenal Intermediate Holdings, LLC and Arsenal Health, LLC have also filed for Chapter 11 bankruptcy.
The captive manager was particularly focused on forming and managing smaller captives making the 831(b) tax election, a section of the market that has come under increasing scrutiny from the Internal Revenue Service over the past 10 years and seen captive managers facing portfolio-wide audits.
Arsenal has previously been nominated and won industry awards, but in 2020 lost a lawsuit brought by Christopher Jarvis, former owner of Jade Risk, which TaylorChandler had bought for $3m to merge with Arsenal in 2016.
Arsenal is now owned by BR Intermediate Holdings, which has acquired several captive and insurance related businesses in recent years.