US insurance industry sees receiverships double in 2025

Receivership activity in the US insurance industry surged in 2025, with 10 companies placed into liquidation or rehabilitation — double the number in 2024.

Specifically, regulators placed eight insurers into liquidation and two into rehabilitation during the year. By comparison, only one company entered liquidation and four underwent rehabilitation in 2024.

Despite the increase in receivership cases, the net total assets of companies placed into receivership in 2025 were significantly lower at $275.4 million, compared with $5.61 billion in 2024.

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Property and casualty

Eight of the 10 companies put into receivership in 2025 were property and casualty (P&C) companies, with the remaining two being health insurers.

This marks a continuation of the trend observed since 2017, in which P&C insurers have comprised the majority of companies entering receivership. This pattern was briefly interrupted in 2024, when three life insurers outnumbered two P&C underwriters.

Graph Insurance Group, a Risk Retention Group LLC, which wrote liability insurance for nursing homes and rehabilitation centers across the US, was the largest company by net assets to enter receivership in 2025. Graph Insurance Group experienced significant losses, stopped writing insurance and went into runoff effective Dec. 1, 2022. In 2023, its estimated ultimate obligations under previously issued insurance policies increased substantially, according to a statement of the Vermont Department of Financial Regulation in March 2025.

The company reported a negative surplus as of Dec. 31, 2024. Vermont risk retention groups are required to maintain $1 million of minimum statutory capital and surplus. In addition, application of the Vermont regulations concerning risk-based capital showed Graph Insurance Group to be in a "mandatory control" status. These factors prompted the Vermont Department of Financial Regulation to seek an order to rehabilitate the company.

Key Insurance Co. was the largest insurer to be liquidated in 2025. Kansas authorities ordered the company into rehabilitation in March 2025. Shortly after in April, the District Court of Shawnee County approved the Kansas Insurance Department's petition to place Key Insurance into liquidation upon determining that further efforts to rehabilitate the company would not be feasible.

Meanwhile, the two health insurers placed into receivership during the year were Crystal Run Health Insurance Co. Inc. and Crystal Run Health Plan LLC, both subsidiaries of Crystal Run Health Transformation Holdings LLC. The two entities were ordered to liquidate in January 2025, prior to which they had a combined net total assets of approximately $3.8 million.