Shenandoah Life Sales Suspended

[Joe Moore]

This is probably as expected, and should be:
Shenandoah Life cancels bonus trips - Roanoke.com

A sign of these times:
Life insurance companies fighting for their lives, too | HamptonRoads.com | PilotOnline.com

 

[Russ]

This is probably as expected, and should be:
Shenandoah Life cancels bonus trips - Roanoke.com

A sign of these times:
Life insurance companies fighting for their lives, too | HamptonRoads.com | PilotOnline.com

It was the right thing to do...canceling the trips.

Interesting article about life insurance companies. My thinking is other companies will take over Shenandoah's policies. I don't see how they survive in this climate.
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Shenandoah lost $61.5 million and it puts them in receivership.

I was looking at figures from Genworth Financial......

"Genworth Financial Announces Fourth Quarter 2008 ResultsRICHMOND, Va., Feb 09, 2009 /PRNewswire-FirstCall via COMTEX/ -- Genworth Financial, Inc. (NYSE: GNW) today reported a loss from continuing operations for the fourth quarter of 2008 of $321 million, or $0.74 per diluted share, compared with income of $180 million, or $0.41 per diluted share, in the fourth quarter of 2007. Loss from continuing operations for the full year of 2008 was $572 million, or $1.32 per diluted share, compared to income of $1,154 million, or $2.58 per diluted share, for the full year of 2007".....

from... Genworth Financial - Investors - Genworth Financial - Financial Releases


They lost $321 million in the 4th quarter and are still alive. Shows how much bigger they are.

 

[Joe Moore]

It was the right thing to do...canceling the trips.

Interesting article about life insurance companies. My thinking is other companies will take over Shenandoah's policies. I don't see how they survive in this climate.
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Shenandoah lost $61.5 million and it puts them in receivership.

I was looking at figures from Genworth Financial......

"Genworth Financial Announces Fourth Quarter 2008 ResultsRICHMOND, Va., Feb 09, 2009 /PRNewswire-FirstCall via COMTEX/ -- Genworth Financial, Inc. (NYSE: GNW) today reported a loss from continuing operations for the fourth quarter of 2008 of $321 million, or $0.74 per diluted share, compared with income of $180 million, or $0.41 per diluted share, in the fourth quarter of 2007. Loss from continuing operations for the full year of 2008 was $572 million, or $1.32 per diluted share, compared to income of $1,154 million, or $2.58 per diluted share, for the full year of 2007".....

from... Genworth Financial - Investors - Genworth Financial - Financial Releases

They lost $321 million in the 4th quarter and are still alive. Shows how much bigger they are.

I have also followed Genworth. Genworth stock is in the tank.

The page you requested can't be found - MSN Money
(this shows it can't be found, but it opened for me)

52-week high 24.88
52-week low .70
Current price 1.09

If you had invested in 1000 shares at $24,880, they would now be worth $1,090. Very darn ugly--about a 96% loss.

 

[Crabcake Johnny]

Yes, trip cancellation was a smart move:

"No, you can't take any money out of your annuity Tom and I'd like to help you more but I have to catch a flight to the Bahamas."

 

[Joe Moore]

Va. Insurer's Decline Came With Scant Warning - washingtonpost.com

No new info, just basically verification that nobody saw this coming.

 

[Russ]

Va. Insurer's Decline Came With Scant Warning - washingtonpost.com

No new info, just basically verification that nobody saw this coming.

From the article....

"Regulators still hope to rehabilitate Shenandoah, possibly by finding another company to acquire the insurer or pieces of it, Gross said.".....

That's what I thought would happen...other companies would take over pieces of Shenandoah. I'm 99% convinced their finished. I'm so convinced I've thrown away my Shenandoah supplies.

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As far as "nobody saw this coming."....found an article from November 19th that talks about the merger. Here's the first 2 paragraphs of the article.....

"It was business as usual at Shenandoah Life, just hours after it was announced the company may be sold.

Leaders say their survival depends on it."

from....WDBJ7 Roanoke News and Weather NRV Lynchburg Danville | Shenandoah Life officials speak out about merger talks
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Found this on the Shenandoah website this morning....

"
March 3, 2009 Update Re: Commissions:

Although the company is not accepting new business at this time, Shenandoah Life continues to pay producer commissions on renewals and first year premiums, with the exception of commissions on single premium policies that the company had committed to issue before February 12, 2009.PLEASE NOTE: The company WILL pay commissions for these excepted single premium policies provided that the free look provision is not exercised."

 

[Russ]

""""February 19, 2009
Dear Policyholders and Other Interested Parties

I am the Commissioner of Insurance, Bureau of Insurance, State Corporation
Commission of the Commonwealth of Virginia. On February 12, 2009, the Circuit Court for the
City of Richmond, Virginia, found Shenandoah Life Insurance Company ("Shenandoah") in a
condition where any further transaction of business would be hazardous to the policyholders,
creditors, members, subscribers, and the public. Accordingly, the Court issued its Final Order
Appointing Receiver for Rehabilitation or Liquidation (the "Receivership Order"), appointing
the State Corporation Commission (the "Commission") of the Commonwealth of Virginia as
Receiver of Shenandoah. On that same date, the Commission entered its Order Appointing
Deputy Receiver for Conservation and Rehabilitation, appointing me as Deputy Receiver (the
"Order Appointing Deputy Receiver").
My staff and I are reviewing the books and records of Shenandoah and are evaluating
what can be done to remove the causes of the receivership. We will be working on corrective
measures for Shenandoah and will keep you advised of further developments.
This booklet will provide you with fundamental information regarding the receivership of
Shenandoah.
Thank you in advance for your patience and cooperation during the receivership process.
Sincerely yours,

/s/
ALFRED W. GROSS
DEPUTY RECEIVER""""....................



Has anyone's policyholders gotten this letter? As far as keeping policyholders advised....they haven't even gotten this letter! Dated 15 days ago. Why date a letter February 19th, if it's the middle of March before the policyholders receive the letter?

 

[Mark]

Is Shenandoah still paying the agents?

If so, how long do you think this will last?

 

[Russ]

Is Shenandoah still paying the agents?

If so, how long do you think this will last?

Yeah....their still paying. I give it another month...through the end of March. Hopefully I'll be wrong and things will work out.

 

[[email protected]]

I write a fair amount of annuities. I have becomed very concerned about the failure of many more companies. I can only wonder how many A+ rated companies might not be giving us the full truth about their true financial situation. I only know that during the Depression of the early 30`s insurance companies survived for the most part.