Florida suspends Atlantic Coast Life from writing policies in the state

The Florida Office of Insurance Regulation has immediately suspended Atlantic Coast Life Insurance Co.’s authority to operate in the state, citing financial impairment and rehabilitation proceedings initiated by South Carolina regulators.

Published Wednesday, the order said Atlantic Coast, an Advantage Capital Holdings company, had an impaired surplus of $170 million as of June 30, based on Florida’s statutory investment limitations.

The company’s impaired surplus was $139.6 million at Sept. 30, 2025, $98.7 million at year-end and $144.9 million at March 31, according to the order.

"Thus, looking at the March and June Quarterlies, both filed in August, Atlantic Coast has an ongoing and sustained state of impairment with signs of further degradation," the Florida order states.

A spokesperson for A-Cap released this statement:

“We disagree with the Florida Office of Insurance Regulation’s action and intend to work in good faith to resolve this matter expeditiously. In the meantime, Atlantic Coast Life remains focused on meeting its obligation to policyholders and completing the capital raise and corporate restructuring initiatives now underway.”

Nearly 7,000 policies

Atlantic Coast reported $12.9 million in year-to-date Florida premiums through Aug. 31, with 6,001 annuity policies and 986 life policies in force.

Florida regulators said Atlantic Coast must immediately stop soliciting or accepting new or renewal business in Florida but must continue servicing existing policies and honoring its obligations to policyholders.

The Florida order comes two weeks after Director Michael Wise of the South Carolina Department of Insurance filed a 56-page petition seeking to take control of insurers Atlantic Coast and Southern Atlantic Re Inc.

In its own 32-page lawsuit, later withdrawn, the A-Cap insurers accused Wise of a prolonged and failed campaign to punish the companies. Last week, AM Best downgraded the financial strength ratings of the two A-Cap insurers, citing deteriorating capital levels, weak operating performance and concerns about the companies’ investment and reinsurance exposures.

The Florida order said Atlantic Coast remains impaired and has not demonstrated that the condition has been cured. It also requires the insurer to continue filing financial reports and maintain a $2 million deposit with the Florida Department of Financial Services.

Atlantic Coast has the right to challenge the order through administrative and appellate proceedings.

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InsuranceNewsNet Senior Editor John Hilton has covered business and other beats in more than 20 years of daily journalism. John may be reached at john.hilton@innfeedback.com. Follow him on Twitter @INNJohnH.