Northstar and Omnia Liquidations: What Can Policyholders Recover?

The liquidations of Northstar Financial Services Bermuda and Omnia have raised concerns over how much policyholders can recover, particularly those holding fixed investment policies.

Both insurers entered provisional liquidation in September 2020. Subsequent Bermuda court rulings have examined how their investment assets should be treated and whether different policyholder groups have claims against segregated or general accounts.

A ruling dated 25 September 2025 provided further directions for the liquidations, highlighting the potentially substantial differences in recovery prospects.

If you held a Northstar or Omnia policy and would like to hear my thoughts on the recovery prospects, or discuss how to manage your remaining investments and potentially recovered funds, email hello@adamfayed.com or WhatsApp +44-7393-450-837.

Why could Northstar and Omnia policyholders receive different recoveries?

Northstar and Omnia policyholders could receive substantially different recoveries because the assets available to satisfy their claims may vary according to how their policies and segregated accounts were structured.

A Bermuda Supreme Court judgment from July 2023 examined whether segregated accounts had been properly established and which assets could be attributed to them.

Segregated accounts are designed to separate designated assets and liabilities from other accounts, but their existence does not guarantee that sufficient assets are available to satisfy policyholder claims.

A September 2025 ruling subsequently addressed directions for the liquidations.

Fixed investment policyholders could recover little or nothing from segregated accounts if assets were not properly allocated to their investments.

Variable investment policyholders may have better recovery prospects where identifiable assets were linked to their policies, although the value and availability of those assets will affect the outcome.

The court also considered potential claims against general accounts. This means fixed investment policyholders may still have avenues for recovery even where no assets were linked to their policies.

What should Northstar and Omnia policyholders expect?

Northstar and Omnia policyholders should prepare for potentially reduced recoveries, with some facing substantially greater losses than others.

A policy's previous account balance does not necessarily represent the amount available for repayment. The outcome will be determined by the policyholder's legal entitlement and the assets available to satisfy that claim.

For affected policyholders, the immediate priorities are to:

• Confirm their policy classification. Establish whether the investment was fixed, indexed or variable and which segregated or general account may be relevant to the claim.
• Check their claim status. Follow the liquidators' instructions to establish whether a claim has been recorded, whether additional documents are required and whether any deadlines apply.
• Review the potential financial loss. Compare the original investment and reported policy value with any recovery estimate communicated by the liquidators, recognizing that estimates may change.
• Keep supporting records. Retain policy contracts, statements, payment records and correspondence in case further verification is required.

The September 2025 court ruling provides directions for the liquidation process, but it does not establish a final recovery percentage or payment timetable for every policyholder.

Until individual entitlements and available assets are confirmed, policyholders should avoid treating previously reported investment values as money they are certain to recover.