American Equity to take earnings charge for ELNY insolvency
Tuesday, July 09, 2013 3:14 PM
American Equity Investment Life Holding Co. has announced that its second-quarter earnings will be reduced by a pretax charge to earnings of up to $8.5 million to cover assessments from state guaranty fund associations stemming from the insolvency of Executive Life Insurance Company of New York (ELNY). The New York Insurance Department brought ELNY under rehabilitation in 1991 after its parent company was seized by regulators. Assessments are now beginning as the court-approved liquidation plan for the insolvent New York insurer kicks into gear after two decades of decline, LifeHealthPro reported. West Des Moines-based American Equity is the first of a number of life insurers that are expected to announce charges to earnings to cover the guaranty fund assessments. American Equity will report its second-quarter earnings on July 31.