The BLBlog

After a merger bid failed, the Roanoke-based Shenandoah Life Insurance Company has been placed in receivership.

The news comes from the State Corporation Commission, which says both the company and the SCC agreed “the receivership was necessary to protect the interests of policyholders and creditors.”

From the SCC news release:

Shenandoah Life lost approximately $50 million when the value of its equity position in Fannie Mae and Freddie Mac preferred stock was significantly diminished.

Virginia Commissioner of Insurance Alfred W. Gross has been appointed deputy receiver in an effort to rehabilitate the company. A moratorium has been placed on the payment of claims and benefits, except for accident & health claims, death claims, and periodic annuity payments, until the deputy receiver completes his evaluation of Shenandoah Life’s financial condition. The company currently will no longer issue new insurance policies.

Posted by Peter Vieth