Why did the Rehabilitator determine that PTNA and ANIC could not be rehabilitated?
According to the Rehabilitator’s court filings, the Rehabilitator worked for several months during 2009 with two actuarial consulting firms to review the companies’ financial condition and future financial projections. The analysis by the Rehabilitator’s actuaries that was presented to the court in October was based on higher projected claims costs and lower projected investment returns than their initial analysis. The updated analysis indicated that PTNA would have a capital and surplus of negative $1.3 billion and ANIC would have capital and surplus of negative $45 million if appropriate reserves for future claims were held. In addition, the Rehabilitator determined that there are no available transactional alternatives (such as capital infusion, reinsurance or sale) that would be fair to and in the best interests of the companies, their policyholders and other affected parties.
