Shenandoah Life Insurance Co. Successfully Exits Receivership
New owners invest $60 million to allow company to resume normal operations; Industry veteran Hans Carstensen named new President and CEO
ROANOKE, Va., May 8, 2012 /PRNewswire/ -- Shenandoah Life Insurance Co. today announced that, following a $60 million capital infusion, it has successfully exited receivership – a rare occurrence in the industry.
Shenandoah Life, which has been serving policyholders since its founding in 1914, will continue to be based in Roanoke as a subsidiary of its new owner, privately held Prosperity Life Insurance Group LLC. Prosperity Life is led by an experienced group of insurance and investment professionals, including Jose Montemayor, the former three-term Commissioner of the Texas Department of Insurance, who will join Shenandoah's newly appointed Board of Directors.
The transaction, finalized today by order of the Virginia State Corporation Commission, means the company will resume normal operations, including continuing to fulfill all of its commitments to policyholders.
"Very few insurance companies have emerged from receivership to resume business. Shenandoah's ability to do so is a tribute to the company's solid operations and talented employees," said Montemayor, President of Prosperity Life. "We sincerely appreciate the patience and loyalty of our policyholders and agents throughout the nation as we worked through the legal and regulatory process. With the receivership behind us, we look forward to continuing a proud heritage of outstanding service."
The company today also introduced industry veteran Hans Carstensen, former President and CEO of Aviva Life Insurance Co., as Shenandoah Life's new Roanoke-based President and Chief Executive Officer.
"Policyholders can be assured that Shenandoah Life policies remain secure and that we will continue to provide the high-quality customer service they expect," Carstensen said. "We are working diligently to honor the needs of our customers and agents as we re-invent our company.
"We would not be here if it weren't for the dedication, loyalty and commitment of our employees, which was certainly a factor in Prosperity Life's decision to invest in Shenandoah Life," Carstensen added.
He added that Shenandoah Life is committed to the Roanoke Valley community.
"This important step out of receivership gives us a chance to once again be fully involved and engaged in the community," Carstensen said. "We intend to support the Roanoke Valley's deep tradition of neighbors helping neighbors, and we look forward to celebrating our 100th anniversary in Roanoke in 2014."
ABOUT HANS CARSTENSEN
Hans Carstensen was previously President and CEO of Aviva Life Insurance Co. from 1996-2007. Aviva USA and its associated subsidiaries were the U.S. operations of Aviva plc, which was the fifth largest insurance conglomerate in the world at that time. Prior to leaving Aviva USA, Carstensen assisted Aviva plc in acquiring the AmerUs Group of insurance companies, subsequently combining the two organizations.
Earlier in his career he served in key roles at GNA Corp. and GE Financial Assurance, an insurance subsidiary of GE Capital. He also worked at Weyerhaeuser Co. in finance and lobbying roles. Carstensen received his MBA in finance and bachelor's degree in political science from Stanford University.
ABOUT SHENANDOAH LIFE
Shenandoah Life Insurance Co., founded in 1914 and based in Roanoke, Va., is an insurance company specializing in providing life insurance, specialty health insurance and annuities to middle-market consumers across the country. Shenandoah has more than 175,000 insurance policies in-force, providing its customers with solutions to help protect against unexpected loss and to assist in building a strong financial foundation for retirement. Shenandoah has more than $1.4 billion in assets. Prosperity Life was selected to sponsor the rehabilitation, conversion and acquisition of Shenandoah Life, which was completed in May 2012.
To find out more about Shenandoah, please visit www.shenlife.com.
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