When well known finance companies hit the skids, it’s bad. But when their names get confused with secure profitable companies, it causes other problems.
High profile Hanover Finance, has become the latest casualty of the finance company sector meltdown. Hanover Finance said late today it was to freeze about half a billion dollars of investors' money and start working on a restructuring plan. (Hmmm)
With 13,000 investors and $465 million worth of debentures, we’ve been asked several times how Hanover Finance's problems could impact the business of Pinnacle Life. Well??
Answer... NOT AT ALL!
Pinnacle Life has no business with Hanover Finance.
The confusion arises because Pinnacle Life reinsures it’s policies with Hannover Life Re of Australasia, a gigantic global reinsurance group.
Hanover Finance and Hannover Life Re are NOT RELATED. (They're not even spelled the same!)
Given the number of people that have raised this question with us, we decided to post this clarification on our blog.