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

What Happens To Structured Settlement if Annuity Issuer or Product Line is Sold or Discontinued?

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 transitions 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.

"There are some people out there who take these assets, they assume the insurance regulators won't pay that much attention to them. And they swing for the fences. We chose not to even talk to people like that," Wilson said to Reuters. "We want our customers to be paid, even though they're not our customers anymore."

In May 2017 Wilton Re acquired several AEGON assignment companies that were used for qualified assignments for structured settlements funded by life insurers in the AEGON family.  Annuitants and payees of structured settlements funded with annuities funded by Transamerica Life Insurance Company, Transamerica Financial Life Insurance Company or Transamerica premier Life insurance Company found new assignment companies' names. For example Transamerica Annuity Service Corporation (TASC) became Wilton Re Annuity Service Corporation.

in 2014, Wilton Re completed the acquisition of Continental Assurance Company from CNA Financial Corporation.  As part of the transaction, an affiliate reinsured a block of run-off structured settlements from a Bermuda-based subsidiary of CNA. "Wilton Re is a leader in In Force Solutions to the life insurance industry” said Chris Stroup, Chairman and CEO in an August 1, 2014 press release. “We have significant capacity to provide companies with solutions for their largest and most complex issues and our administration platform provides high standards of service to policyholders and agents. We look forward to serving the policyholders of Continental Assurance Company.”

Continental Assurance Company became Wilcac Life Insurance Company. Wilcac is a portmanteau of the acquirer and the acquired company names. While Continental Assurance Company had an A (Excellent) rating from A.M/ Best, Wilcac Life Insurance Company holds an A+ rating from A.M> Best.

As I reported in December 2018 and also verified at the time of this publication, Wilcac Life Insurance Company is listed as a currently registered structured settlement transferee on the website of the State of Maryland Attorney General Bryan Frosh. It is believed that the registration was needed to offer a hardship exchange to annuitant/payees in the acquired structured settlement block of Transamerica and other AEGON companies, a service similar to that offered by several other current and former structured settlement annuity issuers.  I attempted to contact Wilcac before publishing but did not receive a substantive response. If Wilcac responds this post will be updated accordingly.

Liberty Life Assurance Company of Boston

Liberty Life Assurance Company of Boston was a meaningful writer of structured settlement annuities until early 2018.  Lincoln Financial Group announced January 19, 2018 that it has entered into a definitive agreement to acquire Liberty Life Assurance Company of Boston from Liberty Mutual Insurance Group. Upon completion of the transaction, Lincoln Financial will retain Liberty’s Group Benefits business and reinsured Liberty’s Individual Life and Annuity business to Protective Life Insurance Company ( a subsidiary of Dai-Ichi Life Holdings).  But what about BARCO?

BARCO Assignments Ltd,  an International Business Corporation in Barbados was an annuity funded non qualified assignment facility that from 1997 to 2018, funded the obligations it assumed through the purchase of annuities from Liberty Life Assurance Company of Boston. Liberty Life also issued a Notice of Financial Commitment, a form of keep well agreement, where Barco Assignments, Ltd ("Barco") entered into a non qualified assignment agreement to assume the periodic payment obligations with claimants.  The notice stated "Liberty Life will ensure that Barco has the minimum amount of net assets required to conduct business under Barbados law, and if at any time Barco has insufficient funds to make any required payment under the terms of any obligation it has to a creditor, Liberty Life will contribute to Barco the funds Barco needs in order to meet its payment obligations . Moreover, in the event that Liberty Life Assurance Company of Boston decides to terminate the financial commitment, it stated that it will satisfy those obligations that predated the termination of the commitment.  

Liberty lived up to its word and did a fantastic job of communicating what was happening and looked out for annuitants.  Here is my February 27, 2018 write up on the Settlement News Network 

John Hancock and MassMutual

John Hancock and MassMutual continue to provide excellent service to structured settlement annuitants. In recent years  John Hancock recently began to offer a hardship commutation option to its structured settlement annuitants. They have maintained superior financial ratings.

Aviva Could Have Done Things Better

In contrast, the Aviva exit story was not so good, but after a few twists and turns at least the story ends well.  After writing 4,000 annuities for an estimated $1B in premium from 2002-2009, Aviva stopped writing structured settlement annuities in early 2009.  Aviva was a popular company with settlement planners with its aggressive medical underwriting, competitive pricing, highly capable, professional and friendly staff and service and for some, a willingness to participate in qualified assignments from single claimant qualified settlement funds.

Aviva charged $500 extra to have what it advertised as a Capital Maintenance Agreement,  a keep well agreement that was advertised as an obligation that was "absolute, unconditional and ongoing". Only it wasn't. It was lie, not just a white lie, but a real lie. Nobody in consumer facing roles actually saw the actual CMA, just a letter that represented what it was. The truth was not revealed to consumers, brokers and even front-line Aviva representatives who interfaced with brokers. One executive at Aviva actually referred to the CMA as a "form of guarantee" in a letter to support a court petition in Erie County New York.

It wasn't until John Griffiths contacted me in August 2014,that Aviva's CMA ruse began to unravel

A year earlier on October 2, 2013 Aviva concluded the sale of its USA life companies to Athene. Griffiths and I learned that the CMA was not actually "absolute, unconditional and ongoing" from Athene and that the CMA "was terminated according to its terms".  Discovery in the subsequent class action litigation filed against against Aviva and Athene July 27, 2015, revealed the deception.  It was madness!  Fortunately, there was no financial impairment. 

Ultimately the settlement of the Aviva/Athene class action in 2018, righted the ship. Among other things, a new CMA backed by Athene Holdings, Ltd was part of the settlement, leaving annuitants with a better capitalized CMA than before. Aviva could have an should have handled things differently, in my opinion. Fortunately, annuitants' payments were not in danger and hopefully never will be. But consumers should get what they bargained for, and the insurer should be completely transparent in its advertising and marketing materials in compliance with the law. As the Structured Settlement Watchdog, I put in a shift on this for the good of the people that this product was intended to protect. The January 21, 2019 letter from Mr. Griffiths speaks for itself.

Choose your structured settlement partners carefully. 

Last updated October 7, 2022

John Hancock Life Introduces Structured Settlement Exchange Program for Its Annuitants

by John Darer® CLU ChFC MSSC CeFT RSP CLTC

John Hancock Life is rolling out a structured settlement exchange program that enables John Hancock annuitants to address their liquidity needs while providing a measure of protection against secondary market predators. 

The John Hancock Structured Settlement Exchange program is unique for being established at a time when John Hancock is not writing structured settlement annuities.  John Hancock ceased writing structured settlement annuities in 2013.

The John Hancock Structured Settlement Exchange program is similar to the Allstate AFEN program and Berkshire Hathaway's Hardship Exchange Program, at a discount rate that is competitive, but definitely not the lowest possible rate.

Always shop around. Selling structured settlement payments usually doesn't make sense for most people, but at least John Hancock Life annuitants who must go down that road, now have a ceiling above which they should not be paying to another structured settlement buyer.

 No John Hancock Life annuitant should pay more than 8% on any sale of structured settlement payments. 8%

Commutation programs are a source of consternation from structured settlement factoring companies who complain that it gives the annuity issuer an unfair advantage, while factoring companies must incur advertising expense to find prospects.

On the other hand one has to consider that the structured settlement factoring industry has no licensing requirement, unregulated sales practices and has an appalling history that has earned blistering exposes in national news media for member business practices (not to mention all the Structured Settlement Watchdog® has sniffed out). There are currently two ongoing lawsuits against life insurers for not doing enough for their annuitants when noticed of a structured settlement factoring transaction.  In my opinion offering a structured settlement exchange or hardship provision is smart business.

 

 

 

 

 

 

 

 

 

 

 

    

Structured Settlement Buyer Sends Mailer To Annuitant Lying That Insurer Going Out of Business

by Structured Settlement Watchdog

Warning to all people holding structured settlement annuities. Beware of predators with claims your company is going out of business!

One structured settlement annuitant recently told a structured settlement buyer that he received a mailer that said his structured settlement annuity issuer was downgraded and going out of business. The mailer is was used as an inducement to motivate the structured settlement annuitant to sell his structured settlement payment rights for pennies on the dollar.

Rogues Gallery of Settlement Purchasers Who've Used Scare Tactics to Induce Annuitants to Sell

Rightway Funding see yesterday's post about "Stan the Vulture" spreading lies about Metropolitan Life insurance Company in order to induce people to sell the rights to their Metropolitan Life funded structured settlements.

Genex Capital, via its Structured Settlement-Quotes property  March 2013

Settlement purchasers " in sheep's clothing" trying to reassure you about the safety of your annuities certainly does "arch the brows".
If there is nothing wrong with Allstate and John Hancock structured annuities (and there isn't) , then why is Genex Capital brand SSQ targeting structured settlement annuitants with those companies through nationally syndicated press releases stating that they "..., announced holders of Allstate or John Hancock Life Insurance structured settlements still have help available

Genex Capital was notorious in 2009 and 2010 for scare tactics about a looming interest rate rise "that would make you poorer". In fact the Genex Capital interest rate "fire sale" was way off the mark.  Anyone who took Genex Capital's advice in 2009 or 2010 would have lost huge amounts of money as interest rates did not shoot up as charitable Roger "The Wreck Beach Tushie Counter" predicted. 

Woodbridge Structured Funding  Fall 2008. Targeted structured settlement annuitants issued by AIG subsidiaries to sell their payments. Eleven years on, taking the advice of anyone at Woodbridge to sell would have been an unmitigated financial disaster. 

In July 2013, I reported here how a Georgia woman with a John Hancock structured settlement was solicited by a structured settlement factoring company which sought to scam her for pennies on the dollar.

The Hartford Sells Life Insurance and Annuity Business to Investors

by John Darer® CLU ChFC MSSC CeFT® RSP CLTC

Hartford Financial Services Group announced on December 4, 2017 that  it would sell its life and annuity unit to a group of investors in a deal valued at $2.05 billion, as it looks to focus on its property and casualty businesses.  Talcott Resolution the run off company for Hartford's legacy life and annuity business. including structured settlement annuities which its stopped writing in April 2012, will be acquired by an investor consortium that includes Cornell Capital, Atlas Merchant Capital LLC, TRB Advisors LP, Global Atlantic Financial Group, Pine Brook and J. Safra Group.

Talcott Resolution to be run as a stand alone company

Talcott Resolution will now be run as a standalone insurance company, according to reports, in a deal expected to close in the first half of 2018, subject to regulatory approval.  Approximately 400 Hartford employees will become employees of the standalone entity

Talcott Resolution will reinsure a portion of its fixed annuity, payout annuity and structured settlement businesses to a subsidiary of Global Atlantic Financial Group (Global Atlantic), according to Insurance News Net. Following the sale, Hartford Investment Management Company (HIMCO), The Hartford’s investment management group, will continue to manage a significant majority of Talcott Resolution’s investment assets for an initial 5-year term. HIMCO also will be retained by Global Atlantic to manage certain assets associated with the post-closing reinsurance agreement.

What Does This Mean to Hartford Life Structured Settlement Annuitants?

If you have Hartford Life Structured Settlement it likely owned by Hartford CEBSCO. The Annuity Issuer is Hartford Life Insurance Company. The obligations of Hartford CEBSCO are guaranteed by Hartford Life, Inc. According to the executive presentation on December 4, 2017, slide 4,  Hartford Life, Inc., Hartford Life Insurance Company will be part of the Talcott deal. I will research, inquire and provide readers with further details as the deal progresses. As always, feel free to contact me with any questions at 888-325-8640

Talcott Resolution 2021 Update

Talcott Resolution Announces Completion of Acquisition by Sixth Street (prnewswire.com)

 

 

 

New York Structured Settlements | Initials vs Names in the Infant Compromise?

by John Darer® CLU ChFC CSSC RSP CLTC

Petitions for infant compromise that include structured settlements in certain New York courts, such as Westchester County, are apparently being submitted using only the initials of the minor

So instead of John Smith, an infant, it would read J.S. an infant, or John S.  This is an important new development that is long overdue, in my opinion.

Courtrooms traditionally have been open to the public, and anyone who wanted to watch a trial could watch, as long as there was a seat available.

The right of access, however, is never absolute. The courts usually apply a balancing test to determine whether the interest in access outweighs any interest in confidentiality.

- See more about public access to court records here

Pros of Initials vs Full Names in Court Records for Minors

However, the right of access is never absolute. The courts usually apply a balancing test to determine whether the interest in access outweighs any interest in confidentiality. The standard the courts use in striking that balance depends on the source of the right - See more at: http://www.rcfp.org/reporter%E2%80%99s-field-guide/access-court-proceedings#sthash.nABxWkJF.dpuf

• While public access to court records is an important right,  does the community really need to know that a minor has an asset,  whether it be cash, a trust or structured settlement due to a tragic event?
• How would the publication of the minors name and identifiable information be in the best interest of the minor if it leads to court scrapers working for or on behalf of structured settlement buyers putting this information into a database so that the child or his parents begin to get harassed by structured settlement buyers to sell their payments in the years leading up to age 18? 
• How would the publication of the minor's name and identifiable information be in the best interest of the minor if it leads to a level of unwanted notoriety that places the lives of the minor, his or her siblings, or his or her parents in danger, or negatively affects them socially?
• Since when did a structured settlement buyer become your mama or your daddy?  Some parents choose not to discuss the structured settlement right away so they can instill the proper values in their children. Should it not be up to the parents to determine when their child is mature enough and the appropriate time to discuss their structured settlement.

Cons of Initials vs Full Names in Court Records for Minors

However, the right of access is never absolute. The courts usually apply a balancing test to determine whether the interest in access outweighs any interest in confidentiality. The standard the courts use in striking that balance depends on the source of the right - See more at: http://www.rcfp.org/reporter%E2%80%99s-field-guide/access-court-proceedings#sthash.nABxWkJF.dpuf

Tracking of annuitant for child support, criminal restitution  or civil restitution, or the IRS,  is far more difficult if the name does not come up.  Some argue that this should happen once the child hits the age of majority.

Use of Initials in Petitions for Structured Settlement Transfers

Some structured settlement buyers attempt to use initials in pleadings, thinly veiled attempts to freeze out competitors who might offer better deals to annuitants.  John Hancock recently objected to petitions made by a structured settlement buyer  in Ohio and Georgia where the structured settlement buyer attempted to use only initials. 

However, the right of access is never absolute. The courts usually apply a balancing test to determine whether the interest in access outweighs any interest in confidentiality. The standard the courts use in striking that balance depends on the source of the right - See more at: http://www.rcfp.org/reporter%E2%80%99s-field-guide/access-court-proceedings#sthash.nABxWkJF.dpuf

However, the right of access is never absolute. The courts usually apply a balancing test to determine whether the interest in access outweighs any interest in confidentiality. The standard the courts use in striking that balance depends on the source of the right - See more at: http://www.rcfp.org/reporter%E2%80%99s-field-guide/access-court-proceedings#sthash.nABxWkJF.dpuf

However, the right of access is never absolute. The courts usually apply a balancing test to determine whether the interest in access outweighs any interest in confidentiality. The standard the courts use in striking that balance depends on the source of the right - See more at: http://www.rcfp.org/reporter%E2%80%99s-field-guide/access-court-proceedings#sthash.nABxWkJF.dpuf

However, the right of access is never absolute. The courts usually apply a balancing test to determine whether the interest in access outweighs any interest in confidentiality. The standard the courts use in striking that balance depends on the source of the right - See more at: http://www.rcfp.org/reporter%E2%80%99s-field-guide/access-court-proceedings#sthash.nABxWkJF.dpuf

What is a Secondary Market Annuity? Who's "Smoking" The "Ash-Geesh"?

by Structured Settlement Watchdog

 

A video for Ash Brokerage illuminates one way peddlers of structured settlement payment rights to investors in the structured settlement secondary market take advantage of the lack of regulation is misrepresenting structured settlement payment rights as annuities. 

 

Ash Brokerage, the sponsor of Let’s Get Down to Business, a show featuring Steve Savant, syndicated financial columnist and talk show host, tries to do the right thing, at least according to an admission made by a "retail adviser" interviewed in a video posted to the Ash Brokerage YouTube channel June 3, 2014. 

 

Here are the a few unedited excerpts of the transcript of Annuity Straight Talk's Bryan Anderson's interview (Note: transcript typos left in)

 

1. GOOD Admits that "secondary market annuity" IS NOT technically an annuity.

 

"1:34

secondary newtie is it really a min knew it it's not technically an annuity as

1:39

everybody knows an annuity* "   (emphasis added)

 

*that's because it is not an annuity!  So why call it an annuity?

 

Then, it all goes horribly wrong

 

2. BAD Bryan Anderson of Annuity Straight Talk completely misrepresents the financial ratings of  John Hancock, MetLife, Allstate and Prudential in the video

"2:58

companies like met life

2:59

New York Life John Hancock allstate prudential the biggest names in the

3:03

business

3:03

and so we're not talking about a-minus purses B-plus carriers 100 talking about

3:08

AAA rated paper here":

 

3. BAD again ANOTHER misrepresentation by Bryan Anderson as to MetLife

 

"and we're not talking about it being carrier again we're talking about

6:48

something like met life for New York Life

6:51

and in comparison to what those companies would offer a triple A rated

6:54

company"   (emphasis added)

==

Neither MetLife, nor Prudential, nor Allstate, nor John Hancock is "AAA rated".  New York Life is not rated AAA by Standard & Poors.

 

Perhaps someone employed at those companies holds membership in the American Automobile Association (also AAA), but that's about it.

 

4. BAD  Bryan Anderson misrepresents and misinforms at 2:49 that "the losing party in that lawsuit never is relieved if a liability to make those payments"  when in fact a qualified assignment relieves them of that obligation and the assignee is substituted as obligor.

 

Furthermore, when there is settlement there is no "losing party" because a settlement is a compromise.  Here is how a structured settlement is actually created.  How Structured Settlements Work | Structured Settlements Explained (4structures.com). The name "paying party" is more accurate.  A paying party could be a Defendant, or the insurer(s) for a Defendant, or both.

 

The subject video contains a marketing misrepresentation that is unfortunately typical of what one can observe in the under-regulated world of the sale of investments in structured settlement payment rights.  Bryan Anderson represents in the video that he is a "retail (financial )adviser" and uses words such as "due diligence". According to Investopedia due diligence is "an investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to a sale.  Aren't financial ratings of the issuers of the underlying paper to the recycled structured settlements material facts?

Who was doing the due diligence on that advertisement ? 

 

Insurance and securities regulators should watch the video and investigate how recycled structured settlement payment rights are being sold.  At this time last year I demonstrated how a Plymouth Massachusetts company misrepresented recycled structured settlements as "Just like a CD".  Others tout guaranty fund protection that may not exist for the asset class.

 

Observations current as of February 23, 2015 at 2:00pm

 

 

 

Fraudulent Sales Pitch to John Hancock Structured Settlement Annuitant

by John Darer CLU ChFC CSSC RSP CLTC

A John Hancock structured settlement annuitant was told that she should sell the rest of her structured settlement payments through scare tactics using false information that John Hancock was going out of business.  The Georgia woman was then allegedly solicited and proceeded to enter into a business deal with the former employee of the structured settlement factoring company.

Of course John Hancock was not going out of business when this unfortunate annuitant was solicited, In March 2013 John Hancock merely ceased writing new structured settlement annuity business. The withdrawal  did not mean that John Hancock would not service its existing customers.

Following my conversation with the alleged victim I asked a senior executive of one of the NASP member companies how they handle payments to sellers. My contact stated that as part of quality control his/her firm will not deposit money into an account for a seller, other than the account of the individual. They will not deposit to any joint account that is not joint with a spouse. Moreover the company follows up with the seller's bank to make sure that the money has been posted to their account.

Structured settlement transfer petitions, which require a judge's approval, are often heard in open court. The executive related how others in the courtroom for unrelated cases, hear the numbers being discussed and one or more occasions the sellers have been approached by random people in the courtroom seeking handouts from the seller of the structured settlement payment rights who has just received discounted lump sum because they had their own financial needs.

While not related to the Georgia lady's situation described above, in March 2013  a website tied to Vancouver Canada based Genex Capital actually issued nationally syndicated press releases targeting Allstate and John Hancock structured settlement annuitants. In the aftermath of the AIG bailout 2008 another secondary market player publicly targeted annuitants of AIG subsidiaries with scare tactics to induce them to sell prematurely, to their detriment.

The Georgia woman's story is unfolding and it is not very pretty.  If Congress and state government legislators do not up their game on this I fear that consumers are going to be hurt like this lady purported to be.

In the meantime those that are or were solicited by anyone to sell theirJohn Hancock or Allstate structured settlements with scare tactics based on false information about these companies' demise should consider making a report to the Federal Trade Commission and/or their state consumer reporting agency. I referred the Georgia woman to a United States Attorney.

If you have no other alternative but to sell structured settlement payments do not sell more than you need to solve your current predicament. Thoroughly check out who you are doing business with and make sure their credentials are valid.

 

 

SSQ's Dubious Press Releases Target Allstate and John Hancock Structured Settlement Annuitants

by John Darer CLU ChFC MSSC RSP CLTC

Settlement purchasers " in sheep's clothing" trying to reassure you about the safety of your annuities certainly does "arch the brows".

 If there is nothing wrong with Allstate and John Hancock structured annuities (and there isn't) , then why is settlement purchaser SSQ targeting structured settlement annuitants with those companies through nationally syndicated press releases stating that they "..., announced holders of Allstate or John Hancock Life Insurance structured settlements still have help available"?

Adding to the dubious nature of the solicitation, which cannot be shrugged off as playful opportunism, the press release, is issued in the name of the URL for a website, with an address out of Hartford CT, the city and state contained on the Better Business Bureau report seal currently displayed on the SSQ website. The problem, as I see it, is that neither the URL, nor the company name reflected in the BBB report associated with the link, are registered with the Connecticut Secretary of State. Neither was another entity. Structured Settlement Quotes Inc. that was listed in April 2012. so it would difficult for a selling annuitant to be able to easily determine, on its face, the true identity of the entity, in my opinion. 

Ironically a blog published on the SSQ website on February 26, 2013 suggested that the brokerage you choose to sell your structured settlements to is made up of members of the NSSTA. That would seem to eliminate SSQ, wouldn't it?

___________________________________________________________________

Again, if you have a structured settlement annuity or funding agreement with Allstate Life Insurance Company, Allstate Life Insurance Company of New York, John Hancock Life Insurance Company (USA) or John Hancock Life Insurance Company of New York, don't panic, the companies ARE NOT going out of business and will continue to service your accounts.

PostScript The July 2014 issue of Best's Review lists John Hancock as one of the top 5 insurers in USA in terms of year end 2013 assets. The company has maintained an A or better AM Best rating for more than half a century.

_______________________________________________________________

Image Credit Milous Chab/Dreamstime

Structured Settlement Market Consolidation Continues as John Hancock Out

by John Darer® CLU ChFC CSSC RSP CLTC

Another structured annuity issuer is to leave the market.  I heard the rumor last week and that has been backed up by an email today.  John Hancock Life Insurance Company and John Hancock Life Insurance Company of New York will cease writing structured settlement annuities effective March 8, 2013. 

Is the world coming to an end? Not at all.  Consolidation is normal in business markets. It is business as usual, with the exception of the single claimant QSF market, which will effectively be dead.

John Hancock is a major insurer who has just made a business decision to withdraw from a particular line of business. The company is not going out of business and will honor its commitments to existing structured settlement annuitants.

To our friends employed there who are waiting for the shoe to drop, we wish them well as they make their transition

 

 

Structured Settlement Annuities Mainly Issued by Largest Insurance Groups

Structured settlement annuities tend to be issued by companies in the largest insurance groups as the July 2011 Best's Review shows.

The following table shows those insurance groups that made the top 20 in assets and included companies that issued or fomerly issued structured annuities. All of those insurance companies had assets exceeding $100 billion at the end of 2010.

Life/ Health Insurers                                    2010 Assets (000)   Growth Rate

1. Metropolitan Life and Affiliated Companies   $575,062,104      9.1%

2. Prudential of America Group                       $403,755,468      9.9%

3. Manulife (incl John Hancock & NY affiliate)  $237,477,486      9.3%

4. Sun America Financial (incl Am.Gneral)        $230,208,221      4.2% @

5  Hartford Life Group                                    $228,628,548       4.2%

7. New York Life Group                                   $214,437,508       6.3%

8  AEGON USA Group                                      $187,622,590       4.3%*

9. ING USA Life Group                                    $185,172,540       3.8%*

13. Mass Mutual Financial Group                     $141,142,242       6.1%*

15. Pacific Life Group                                     $102,642,324       4.8%

* life insurance companies in the group formerly issued structured annuities

@ includes both current and former structured annuity companies

Source: A.M. Best Best's Review July 2011 p 28-29

The 2010 results suggest that "bigger is better" as the top 3 grew their assets by over 9%. The industry average  was 7.1% according to A.M. Best.

Compare the size of these life insurance groups to some well known companies in other industries

JP Morgan  2.12T

Exxon Mobil  $302.51B

Microsoft Corporation $99.73 B

Apple $86.74B

Coca Cola $72.92B

Disney  $70.95B

Pepsi  $68.15B

Google $57.85B

McDonalds $31.98B

American Airlines $25.09B

Source: Y Charts (Dec 2010 Balance Sheet Assets)

Disclaimer: The purpose of the above table is to show that life insurers are among the largest U.S. companies in the United States and offer a means of comparison to thsoe unfamiliar with insurance. Note that there are generally three primary elements to a balance sheet (assets, liabilities and shareholder's equity). Some insurers listed are mutual companies which are regulated, but not publicly traded, and are owned by policyholders (not shareholders).

 

by John Darer