Shenandoah Life Insurance placed into receivership by SCC

Posted to: Business

The Associated Press
© February 14, 2009

ROANOKE, Va.

Shenandoah Life Insurance Inc. has been placed into receivership following the cancellation of a merger with another company.

State Commissioner of Insurance Alfred Gross said Thursday in a statement that the Virginia State Corporation Commission placed the Roanoke insurer in receivership "in an effort to rehabilitate the company."

No new insurance policies will be written but health, accident and death claims and annuity payments will be paid.

Thursday's announcement came a day after Shenandoah announced that American United Mutual Insurance Holding Company had terminated its merger with Shenandoah. American United's units do business as OneAmerica Financial Partners.

In November, Shenandoah Life reported losing $60 million during the first nine months of 2008.

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