Life Insurer's Failure Puts 100,000 Customers at Risk of $2.2 Billion in Losses
PHL Variable Insurance Co., a private‑equity‑owned life insurer, collapsed after a $450 million reinsurance asset tied to a 2019 transaction was found to have no value. The failure will force liquidation, leaving roughly 100,000 policyholders with a $2.2 billion shortfall and recoveries limited to 34‑57% of their claims. Connecticut regulators had previously allowed the insurer to count the excess‑of‑loss agreement as an asset, a practice barred by NAIC rules. Similar off‑balance‑sheet reinsurance structures have surfaced at Brookfield’s American Equity unit, prompting broader industry scrutiny.
Broker Liability Ruling: Carriers, Brokers, Analysts Weigh In
The U.S. Supreme Court broadened liability for freight brokers that fail to vet drivers, a ruling that tilts the market toward large, asset‑based carriers with deep financial resources. Schneider National has already slashed its broker network by 76%, while RXO...
State Farm Gets $1.5bn of Reinsurance with Merna Re Enterprise 2026-1 Catastrophe Bond
State Farm has returned to the catastrophe‑bond market, closing a $1.5 billion private issuance through Merna Re Enterprise Ltd.’s Series 2026‑1. The deal consists of two $750 million tranches, Class A at a 6.25% spread and Class B at 9.25%, providing fully collateralized reinsurance through...
Senators Outline Plan For Medicare Home Care Benefit: What It Would Mean For Providers
A coalition of Democratic senators released a policy framework to add a dedicated home‑care benefit to Medicare and broaden Medicaid’s home‑ and community‑based services (HCBS). The proposal aims to make home care more affordable, improve quality in nursing homes, and...
Justice Department Can Question Former Elevance Exec in Medicare Advantage Fraud Case, Judge Rules
A federal judge granted the Justice Department permission to depose former Elevance Health executive Peter Haytaian for 3.5 hours, rejecting the insurer’s attempt to limit the scope of questioning. The DOJ alleges Elevance, then Anthem, generated over $100 million annually by...
HHS Launches AI Initiative to Detect Fraud and Waste in Federal Health Programmes
The U.S. Department of Health and Human Services has launched an artificial‑intelligence program to screen Medicare, Medicaid, CHIP and the Health Insurance Marketplace claims in real time, replacing the traditional “pay‑and‑chase” model. The move follows a February strategy that introduced...
SCOR Secures $75M Atlas Capital 2026-1 Catastrophe Bond
French reinsurer SCOR has secured the full $75 million target for its Atlas Capital DAC Series 2026-1 multi‑peril catastrophe bond, priced at the low end of guidance. The bond will provide retrocession protection for storms and earthquakes across the U.S.,...
Mangrove Property Insurance Secures $111M Reinsurance via Buttonwood Re Cat Bond
Mangrove Property Insurance has completed an upsized $111 million catastrophe bond issuance with Buttonwood Re Ltd., securing $75 million of per-occurrence and $36 million of annual aggregate reinsurance protection for Florida named storms. All four tranches priced at the low...