The Court’s ruling validates ACL and SAR’s strong financial position, noting the companies maintain positive cash flow and hold $100.7 million in capital and surplus. The decision also recognizes the significant steps taken by ACL, SAR, and Advantage Capital Holdings (A-CAP) to strengthen their financial position.

“We are pleased that this ruling will allow us to focus our energy on providing families across the nation with flexible and competitive life insurance and annuity products to help ensure they meet their financial goals for generations to come. This ruling affirms what we have consistently maintained – that Atlantic Coast Life and Southern Atlantic Re are financially sound, stable institutions, fully capable of meeting our obligations to policyholders,” said Kenneth King, Chairman and CEO of A-CAP Group. “While this entire episode has been costly and wholly unnecessary, we are hopeful that it will encourage regulatory bodies to take a more collaborative, productive approach with the industry going forward.”

The Court specifically found that the companies have “significantly abated conditions” that led to initial regulatory concerns, highlighting that ACL “maintains positive cash flow” and “has not had difficulty paying amounts owed to either its policy holders or creditors.” In the Order the Court also noted, “Petitioners have shown by a preponderance of the evidence that the Department’s Order is contrary to the law and unsupported by the facts” and concluded “Accordingly, based upon the preponderance of the evidence, I conclude that the Director’s December 11th Order is unsupported by the evidence in the record.”

Atlantic Coast Life Insurance Company, founded nearly 100 years ago, provides pre-need insurance and fixed annuity products. Southern Atlantic Re, Inc. is a wholly-owned subsidiary that serves as a captive reinsurer. Both companies remain committed to serving their policyholders and maintaining their strong market position.