Where Do We Go From Here? What Does PHL (Problem?) Mean to the Insurance Industry? How Can We Help Our Clients?
YCISG welcomes guest Bobby Samuelson as a participant in our discussion on this topic at our August 12th meeting. Mr. Samuelson is the President and CEO of Life Innovators and is one of the most astute observers and commentators on the state of the life insurance industry. In addition to his CEO responsibilities, Mr. Samuelson has been serving as the Executive Editor of The Life Product Review since 2012 and is a regular keynote speaker at corporate and industry events. Before founding his own firm, Mr. Samuelson was Senior Vice President and Head of Life Insurance and Annuity Product Development and Pricing at Brighthouse Financial and Vice President of Life Product Development at MetLife. He is the third generation of his family to work in life insurance.
The recent news regarding PHL Variable Insurance Company and its subsidiaries being placed into rehabilitation by the Connecticut Insurance Commission has been a hot topic, leaving life insurance brokers wondering, “Where do we go from here?”
From the article: Larry Rybka, chairman and CEO of Valmark Financial Group, who runs an insurance broker and a life settlement broker, doesn’t believe an insurance company will take over PHL Variable because the rehabilitator found that the $1 billion deficit is far larger than previous filings indicated.
“This means it is almost certain no one will buy the company as is or even take it for free because no company wants to burn up its own money filling this hole,” he said in an email. “It likely will result in some form of liquidation after reformation of the contracts by the rehabilitator to bring assets and liabilities into balance.”
Rybka said a rehabilitator has the power to change or reform the existing contract rights of the policies.