Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and John Darer Reviews

Hartford, Genworth and AEGON apply to become Bank Holding Companies

Several insurance groups with ties to the structured settlement industry submitted applications to become bank holding companies to the Office of Thrift Supervision (OTS) on Friday November 14, 2008.

The Hartford Financial Services Group, parent of current structured annuity issuer Hartford Life Insurance Company, Genworth Financial Inc., and Aegon NV, parents of former structured annuity issuers were among the insurance groups.

Hartford is seeking to acquire the Federal Trust Bank for about $10 billion, according to a statement made by the company. Federal Trust Bank is a FDIC-insured savings bank owned by Federal Trust Corp. of Sanford, Florida.Genworth Financial Inc.applied to acquire the Inter Savings Bank, Aegon NV, parent of insurer Transamerica, applied to acquire Suburban Federal Savings Bank.

The Hartford said it would be eligible for anywhere between $1.1 billion and $3.4 billion in funds, under the current Treasury guidelines, with the final amount to be determined by the government.

"Securing capital at the terms available through the (Treasury's) Capital Purchase Program could be a prudent course in this market environment and would allow us to further supplement our existing capital resources," said Hartford CEO Ramani Ayer in the November 14th statement.

Structured Settlement Annuity Companies Stand The Test Of Time

by John Darer® CLU ChFC MSSC RSP CLTC

A.M. Best Company has been issuing financial strength ratings for 102 years-over a century! These financial strength ratings represent A.M. Best's opinion concerning the ability of individual insurance companies to pay claims on the the policies of insurance they have written.

Claims paying ability is something that should be of prime importance to tort victims receiving or contemplating structured settlements, their lawyers, and anyone owning or contemplating the purchase of life insurance, disability insurance, long term care insurance, annuities, medical insurance or accepting a payment stream involving any non qualified assignment covering a long term payment obligation like structured sales, structured celebrity endorsements, structured attorney fees, divorce structured settlements, employment structured settlements or environmental structured settlements

The July issue of Best's Review named 48 property and casualty insurers and 15 life and health insurers who have maintained a Best's Financial Strength rating of A (Excellent) or better for at a least 75 years. A number of these companies issue structured settlement annuity policies, or are former issuers of structured settlement annuities.

75 years of AM Best "A" (Excellent) or better

• Aviva Life and Annuity (and predecessors)
• John Hancock Life Insurance Company
• Genworth Life and Annuity (and predecessors-former structured annuity issuer)
• Metropolitan Life Insurance Company
• New York Life Insurance Company
• The Prudential Insurance Company of America

Best's ALSO lists companies with:

50 years of AM Best "A" (Excellent) or better

• American General
• American Home Assurance Company (one of AIG structured settlements qualified assignee)
• National Union Fire Insurance Company of Pittsburgh, PA (one of AIG structured settlements qualified assignee)
• Hartford Life Insurance Company
• Canada Life Assurance Company (former structured annuity issuer)
• Liberty Life
• Massachusetts Mutual Life Insurance Company (former structured annuity issuer)
• Transamerica Occidental Life (AEGON structured settlements-former structured annuity issuer)
• United of Omaha (former structured annuity issuer)

In these challenging financial times the aforementioned information is important. To put things in perspective, in the 75 years since the bottom of The Great Depression, a number of dramatic world events have occurred

• World War II
• Korean War
• Suez Crisis
• Kennedy Assassination
• Six Day War
• Cuban Missile Crisis
• Vietnam War
• 1970s Terrorism
• Yom Kippur War and the 1973 Oil Crisis
• Mini-Recessions of 1980 and Recession of 1981-1982
• Oil crises of 1979, 1990 and 2008
• AIDS pandemic 1981+
• Stock Market Crash of 1987
• US Recession 1990-1992/ Global 1990-1993
• Gulf War
• Global Recession 1998
• 1997 Asian Financial Crisis
• 1998 Russian Financial Crisis
• 9-11
• Global Recession 2001-2002
• 7-7
• Wars on Terror/ Iraqi Freedom Iraq & Afghanistan War

The following numbers, from Best's Review, illustrate that these structured settlement annuity companies have not only have stood the test of time to pay their claims, but they have experienced long term growth despite having had to navigate turbulent economic times over many years:

Assets in 1928

• Metropolitan Life Insurance Company  $2.3B
• New York Life  $1.4B
• Prudential Insurance Company of America  1.78B

Assets year end 2007

• Metropolitan Life Insurance Company  $297.46B
• New York Life  $122.75B
• Prudential Insurance Company of America  $252B

Dear Genworth Here's My Bill

Hey Genworth are you listening? When you took on the old GE Capital book of business did you think you could just ignore YOUR POLICYHOLDERS?

Why can't Genworth send notices to ALL old GE Capital policy holders with Genworth's correct phone number.  I get so many calls from your distraught policyholders on 4structures.com, LLC's toll-free number that we should be sending you a bill for these toll-free charges.  It's an utter disgrace.

We are cordial with YOUR CUSTOMERS and  we take the time to refer YOUR CUSTOMERS to YOUR NUMBER because these poor souls have no where else to go for questions about YOUR POLICIES. Many of these people are seniors,  or their children, having old life and long term care policies and they need help.

But this is the second post that I have written on the subject. How long has it been since GE Capital Financial Assurance morphed into Genworth?

WHAT IS GENWORTH'S PROBLEM?