South Carolina insurance regulators petitioned a court to take control of A-CAP's Atlantic Coast Life Insurance Co. and a subsidiary. Officials claim the companies are in a financially hazardous position.
The filing alleges the insurers hold dangerous exposure to the collapsed investment firm 777 Partners. Regulators also cite excessive investments in high-risk, non-investment-grade private credit that violated internal policies.
Atlantic Coast's capital and surplus dropped 42% during the first half of the year. This decline occurred alongside substantial policyholder withdrawals. The move aims to protect thousands of elderly annuity holders.