Regulator seeks liquidation order for Global Liberty Insurance Co. of New York

The New York Department of Financial Services is asking a state court to place Global Liberty Insurance Co. of New York into liquidation after finding it to be insolvent by more than $30 million.

Adrienne Harris, the acting superintendent of the NYDFS, filed a petition Sept. 14 with the New York State Supreme Court, asking that the regulator be appointed as liquidator for Global Liberty, which is an Atlas Financial Holdings Inc. subsidiary.

The regulator in the petition stated that Global Liberty's audited financial statements for full years 2020 and 2019 showed that its total liabilities exceeded total admitted assets by $30.2 million. Based on details in the company's second-quarter 2021 10-Q, that deficiency has since increased to $31.6 million, Harris said.

Global Liberty's board of directors consented to a liquidation order on July 28.