RICHMOND — The State Corporation Commission (SCC) has been named receiver for Shenandoah Life Insurance Company by the Circuit Court of the City of Richmond. Both Shenandoah Life and the Commission determined that the receivership was necessary to protect the interests of policyholders and creditors.

Shenandoah Life is a Virginia-domiciled life and health insurer writing primarily life, annuities and dental insurance. The company is headquartered in Roanoke, Virginia and is licensed to do business in 31 states plus the District of Columbia.

Shenandoah Life recently experienced financial difficulties because of impairments in its investment portfolio. Shenandoah Life lost approximately $50 million when the value of its equity position in Fannie Mae and Freddie Mac preferred stock was significantly diminished.

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.

Policyholders with questions about the receivership are encouraged to call the SCC’s Bureau of Insurance. From within Virginia, the toll free number is (800) 552-7945. Callers may also dial direct at (804) 726-2630. Information is also available by calling Shenandoah Life at (540) 985-4400 or from the company’s web site at www.shenlife.com.

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Case Number INS-2009-00032

View Commission Order Appointing Deputy Receiver
View Circuit Court File CL09-673