by John Darer CLU ChFC MSSC CeFT RSP CLTC
When you enter into a structured settlement for the long haul it can be quite unsettling to learn that the insurance company has been sold or the product line discontinued. While this can happen (and has happened) for a variety of business reasons, it's important to remember that insurance companies are regulated, which for some insurers who are licensed in all 50 states, means that the insurer must meet the statutory requirements in all places it does business. Regulators are involved in any merger or acquisition.
How an insurer manages the change says a lot about the company. Here are some examples of how divestitures and acquisitions of structured settlement product lines, or actual insurers, have gone over the years:
The Good Hands People
Allstate Life Insurance Company and its New York subsidiary, Allstate Life Insurance Company of New York were some of the foremost underwriters of structured settlement annuities until 2013. Known for competitive underwriting, innovation in expanding periodic payment solutions for taxable settlements and installment sales, the Advanced Funding Exchange Notice and having an outstanding marketing and service team.
When Allstate Corp went to sell its life and annuity business, it looked for firms not aggressively redeploying assets to riskier investments, Chief Executive Officer Tom Wilson told Reuters. In January 2021, Allstate agreed to sell 80% to Blackstone Group Inc and the rest to Wilton Re, an insurer owned by the Canada Pension Plan Investment Board. Both sales are expected to close in 2021.