(Bloomberg) — State regulators are abandoning a plan to rehabilitate PHL Variable Insurance Co. and may pursue liquidation instead, after finding that the struggling life insurer — acquired by private equity firm Golden Gate Capital a decade ago — is in worse shape than previously thought.
Authorities said they may also sue Golden Gate and its Nassau Financial Group insurance arm on claims including breach of fiduciary duty if the firms don’t agree to an acceptable settlement. In a statement, Nassau called such accusations “without merit.”
Seeking rehabilitation no longer appears feasible, Joshua Hershman, the interim head of Connecticut’s insurance department, wrote in a court filing on New Year’s Eve. PHL doesn’t have…