Beechwood Re Moves to Dismiss Action Accusing it of Mismanaging Insurer’s Reserves

NEW YORK — Beechwood Re Ltd. has moved to dismiss an action accusing it of $320 million of an insurer’s policyholder reserves by investing them with a troubled hedge fund, arguing that Senior Health Insurance Company of Pennsylvania (SHIP) failed to plead its fraud claims with the required specificity.

In its motion to dismiss filed in the U.S. District Court for the Southern District of New York, Beechwood further argues that SHIP has failed to state a cause of action for RICO violations because the claims are duplicative of the breach of contract claims.

After sustaining significant and ongoing underwriting …