The liquidation of Hartford-based PHL Variable Insurance Co. and its subsidiaries is now expected to occur in 2027, according to a status report filed by the company’s court-appointed rehabilitator Tuesday. Insurance Commissioner Joshua Hershman, who is overseeing PHL’s rehabilitation, said in the report that the timing depends on a request-for-proposals process the National Organization of […]
The liquidation of Hartford-based PHL Variable Insurance Co. and its subsidiaries is now expected to occur in 2027, according to a status report filed by the company’s court-appointed rehabilitator Tuesday.
Insurance Commissioner Joshua Hershman, who is overseeing PHL’s rehabilitation, said in the report that the timing depends on a request-for-proposals process the National Organization of Life and Health Insurance Guaranty Associations expects to launch in the third quarter this year.
That process will seek bids to assume PHL’s guaranteed policy obligations and could potentially fund additional benefits above guaranty association coverage limits using estate assets.
PHL was placed under state control in May 2024 after reporting negative capital of $2.2 billion, a shortfall tied largely to its universal life insurance policies.
In December, the Connecticut Insurance Department determined that
a standalone rehabilitation plan was not feasible, finding that all of PHL’s business blocks were “materially impaired.”
That report also disclosed potential legal claims against PHL’s former owners, Nassau Financial Group and its private equity backer Golden Gate Capital.
