PHL Variable Insurance Enters Rehabilitation Proceedings

Connecticut Insurance Department and Commissioner Mais act to protect PHL’s policyholders.
No immediate impact on policyholders’ recurring payments

HARTFORD, CT – On Friday, May 17, 2024, Connecticut Insurance Commissioner Andrew N. Mais filed in the Connecticut Superior Court, Hartford Judicial District, a Petition for Rehabilitation and Appointment of the Commissioner as Rehabilitator of PHL Variable Insurance Company ("PHL") and its subsidiaries, Concord Re, Inc. (“Concord”) and Palisado Re, Inc. (“Palisado”) (collectively, “the Companies”). On Monday, May 20, 2024, the Superior Court entered an order placing the Companies into rehabilitation proceedings and appointing Commissioner Mais as the statutory Rehabilitator of the Companies in accordance with the Connecticut Insurers Rehabilitation and Liquidation Act. The Companies consented to the rehabilitation.

PHL is a Connecticut-domiciled insurance company that issued life insurance and annuity products and related supplemental contracts to policyholders nationwide. Concord and Palisado are captive insurance companies whose only business is the reinsurance of PHL’s liabilities. The Connecticut Insurance Department (the “CID”) filed the Petition after determining that the Companies are in a hazardous financial condition and that other alternatives have been thoroughly explored.

“Today's filing underscores the Department's commitment to protecting consumers and ensuring the availability of a financially sound insurance industry in Connecticut,” said Commissioner Mais. “This action is a critical first step for the Department to begin developing and implementing a plan of rehabilitation that both maximizes the value of the Companies’ assets and equitably administers PHL’s business for the benefit of all policy and annuity holders.”

The Superior Court also entered an order imposing a moratorium limiting payments under some policies while a rehabilitation plan is developed. The moratorium will not have any immediate effect on recurring payments and death benefits for most policy and annuity holders. Life insurance and annuity holders will receive a letter detailing any restrictions on their policies.

The Rehabilitator expects to develop a plan of rehabilitation for the Companies over the next twelve months, subject to the Court’s review and approval.

A copy of the Petition, Rehabilitation Order, Moratorium Order, and other Court filings, Frequently Asked Questions, and other information related to the rehabilitation can be found at CT.gov/cid.phl. This webpage will be updated regularly by the CID.

Policyholders and other stakeholders can get answers to questions by calling 1-877-800-2445.

Media inquiries can be sent to cid.news@ct.gov