PHL Variable Insurance Company Rehabilitation

PHL Variable Insurance Company and its subsidiaries, Concord Re, Inc. and Palisado Re, Inc. (collectively, “PHL”) entered rehabilitation proceedings in the Connecticut Superior Court on May 20, 2024, in response to PHL’s hazardous financial condition. Rehabilitation is a court proceeding that a company’s state insurance commissioner may initiate to take control of the company if it is in a hazardous financial condition. The goal of the rehabilitation proceeding has been to develop a rehabilitation plan that maximizes the value of assets and equitably administers the business for the benefit of all policy and annuity holders.

Rehabilitator’s Pivot to an Enhanced Liquidation Plan Approach

As reported to the Court on December 31, 2025, the Connecticut Insurance Commissioner, acting in the capacity of Rehabilitator for the Companies (the “Rehabilitator”), has determined that a pure rehabilitation plan structure as originally contemplated is not feasible because any rehabilitation will require funds from state guaranty associations. The Rehabilitator understands that the guaranty associations will require a liquidation order with a finding of insolvency to trigger their coverage.

While a liquidation order is expected, the Rehabilitator will continue to administer PHL’s business and seek opportunities to maximize the value that can be delivered to policy and annuity holders until such an order is issued. The Moratorium Order as described below remains in effect.

Significantly, the Rehabilitator believes that a liquidation order can be combined with a transaction that will enable active policy and annuity holders to receive some level of ongoing benefits in excess of what they would receive solely under guaranty association coverage (i.e., an enhanced liquidation plan). The Rehabilitator is now focused on pursuing a transaction of this type to maximize the value of PHL’s assets and coverage for policyholders. The amount of such coverage will depend on the outcome of negotiations with the state guaranty associations and prospective transaction parties that may provide such coverage or an alternative additional benefit.

Moratorium Order Overview

On June 25, 2024, the Court finalized the moratorium terms, which limit payments and transactions under some policies during the rehabilitation proceeding. The moratorium allows PHL to mitigate the high outflow of claim payments during the rehabilitation. For most PHL policy and annuity holders, the moratorium will not have any immediate effect on recurring payments and death benefits. Life insurance and annuity holders have received a letter detailing any restrictions on their policies.

On July 21, 2025, the Rehabilitator proposed modifications to the moratorium. The proposed modifications seek to ease the current restrictions imposed by the moratorium on owners of certain non-variable universal life insurance policies and certain owners of fixed indexed annuities.

On December 24, 2025, the Court granted the motion to modify the Moratorium. No action related to the modification is necessary prior to receipt of the election packages, which are expected to be mailed to each eligible holder of a universal life policy or fixed indexed annuity in mid-to-late January 2026. The individualized election packages will include an overview of the applicable modification options, an election form and the transaction forms necessary to implement the election. Eligible policyholders and annuity holders will have 45 days from the date of the election package cover letter to make their elections.

Additional Information for Policy and Annuity Holders

Policy and annuity holders, as well as other stakeholders, can get answers to questions by calling 1-877-800-2445. The call center is open Monday through Friday, 9 AM - 5:30 PM ET. You may also access the docket of all PHL-related court information at any time during the PHL rehabilitation proceeding.

The Department will continue to update this page as information becomes available. Register here to receive an email notification when new information is added.

Important Information

Court Documents:

NOTE: Only certain court documents are directly linked below. All court filings can be accessed using the linked docket below.

 

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