Shenandoah Life Insurance takeover deal falls through

1:30 p.m.

The State Corporation Commission has been named receiver for Shenandoah Life Insurance Company, by Richmond Circuit Court.  Both the company and court determined the move was necessary to protect policy holders and creditors.

The SCC says Shenandoah recently lost approximately $50 million when the value of its equity position in Fannie Mae and Freddie Mac preferred stock lost a significant amount of money.

According to the SCC:

• 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

If you have a policy through Shenandoah and have questions, call the SCC’s Bureau of Insurance toll free within Virginia at (800) 552-7945.  The long distance direct number is (804) 726-2630.

————

11:34 a.m.

  An Indiana based company has decided to axe a plan to takeover the financially troubled Shenandoah Life Insurance company.

  Shenandoah Life has a hub in Roanoke off Brambleton Avenue.

  The Indiana insurance conglomerant, OneAmerica, announced it had decided to “terminate” the deal in a news release this morning.

  A spokeswoman said privacy agreements with Shenandoah Life prevented her from revealing any details.

  You can see more about this story tonight on WSLS 10 On Your Side at 5 p.m.