Blue Cross Blue Shield of Vermont pension fund takes $40.6 million hit
Blue Cross Blue Shield of Vermont has lost $40.6 million, or 58%, of its pension fund for employees in the financial downturn.
The losses could have an impact on the company’s “solvency and reserves,” according to a letter that CEO Don George sent Monday to state regulators. The letter, which was obtained by VTDigger, noted that Blue Cross was “assessing potential remedies for this loss, including potential legal action” to recoup the money.
George did not say why the company lost the money, but Blue Cross spokesperson Sara Teachout confirmed that the pension funds were managed by Allianz Global Investors, which reported a 75% decrease in the value of a particular strategic portfolio in late March, according to an article by Pensions & Investments. Sixteen of Blue Cross Blue Shield’s companies nationally had money managed by the company, said Department of Financial Regulation Commissioner Mike Pieciak.
The pension plan losses “appear to be distinct from and in excess of the general market losses resulting from Covid-19,” George said. The benchmark Dow Jones Industrial Average fell about 30% between February and March, but rebounded in June to within 2,000 points of its wintertime peak.
Read more: https://vtdigger.org/2020/07/02/bluecross-blueshield-of-vermont-pension-fund-takes-40-6-million-hit/