Utah issues order for A-Cap insurers to stop doing business due to reserving concerns
December 10, 2024 by John Hilton
Utah Insurance Commissioner Jonathan T. Pike signed an order Monday barring Sentinel Security Life Insurance Co. from writing new business in the state after Dec. 31.
Click HERE to read the full story via INN.
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During the third quarter, Sentinel Security had a market share of 0.39% in a $115 billion annuity market, according to Wink’s Sales & Market Report.
“This puts Sentinel Security Life in a precarious position,” said Sheryl Moore, CEO of Wink, Inc. and Moore Market Intelligence. “I’m curious to see what is in store for their contract holders.”
Wink’s Moore on the Market: Negative capital and surplus in the hundreds of millions of dollars?
Sentinel Security Life Insurance Co. won’t be able to issue new business after the close of 2024.
This article makes it sound like they are robbing Peter, to pay Paul.
Utah insurance examiners indicate that they “are in a Hazardous Financial Condition and that such condition presents an immediate and significant danger to the public health, safety, or welfare, and that immediate action is necessary and in the public interest.”
In response, A-Cap (the parent company) indicates that “A-CAP vigorously disputes the flawed valuation conducted by an unqualified firm. A-CAP stands by its valuation work, which was validated by two highly qualified and independent valuation firms, and is challenging the Order to protect its policyholders, its investors, and the interests of the broader aviation leasing industry participants.”
Thanks for the update, John Hilton with InsuranceNewsNet. – sjm
