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

John Hancock Pending Structured Annuity Underwriting Company Changes Reminder

John Hancock has announced organizational changes in the early Fall that are pending regulatory approval. We are reposting this as a reminder to those who have or are contemplating structured settlement annuities funded with a John Hancock annuity product.

Pending regulatory approval, John Hancock Life Insurance Company (“JHLICO”, which issues structured settlement annuities (and guarantees the payment of periodic payment obligations assigned to John Hancock Assignment) is to be merged into John Hancock Life Insurance Company (U.S.A.) (“JHUSA”). As a result, John Hancock is to withdraw JHLICO’s license to do business in New York.

Under the withdrawal plan approved by the New York Insurance Department, JHUSA will then
assume direct responsibility for the payment of all claims and benefits, and for all other policy
obligations, under in force policies, certificates, or contracts. Servicing will continue without interruption.

All new insurance policies and annuity contracts in New York will be issued by John Hancock Life
Insurance Company of New York or John Hancock Life & Health Insurance Company.

A few bullet points from the John Hancock Q&A

1. Not final yet. It is pending regulatory approval.
2. The withdrawal and realignment is taking place in sequel to the Manulife Financial Corporation acquisition of John Hancock Financial Services, Inc. in 2004.  Despite the integration having been successful, as is often the case in combining large organizations, John Hancock now has an excess of legal entities. As a result, this measure is part of the process of streamlining these entities to better position the company for future growth.
3. We expect the withdrawal and realignment will become effective at the end of the day on December 31, 2009 and your policy, certificate, or contract to be endorsed effective at that time to show John Hancock Life Insurance Company (U.S.A.) as the insurer

Useful reference pieces

New York John Hancock Questions and Answers on Merger

Download NYWithdrawalClientQA

Sample Cover Letter To Be Going Out to John Hancock clients (also presumably to structured settlement annuitants) along with the Q&A

Download Subsidiary Reorganization Cover Letter and Info Sheet

Q2 2009 Financials

John Hancock Life Insurance Company (U.S.A.) and John Hancock Life Insurance Company of New York., as provided by John Hancock

Download JHUSA and JHNY Financials Q2 09

John Hancock has announced organizational changes in the early Fall that are pending regulatory approval. We are reposting this as a reminder to those who have or are contemplating structured settlement annuities funded with a John Hancock annuity product.

Pending regulatory approval, John Hancock Life Insurance Company (“JHLICO”, which issues structured settlement annuities (and guarantees the payment of periodic payment obligations assigned to John Hancock Assignment) is to be merged into John Hancock Life Insurance Company (U.S.A.) (“JHUSA”). As a result, John Hancock is to withdraw JHLICO’s license to do business in New York.

Under the withdrawal plan approved by the New York Insurance Department, JHUSA will then
assume direct responsibility for the payment of all claims and benefits, and for all other policy
obligations, under in force policies, certificates, or contracts. Servicing will continue without interruption.

All new insurance policies and annuity contracts in New York will be issued by John Hancock Life
Insurance Company of New York or John Hancock Life & Health Insurance Company.

A few bullet points from the John Hancock Q&A

1. Not final yet. It is pending regulatory approval.
2. The withdrawal and realignment is taking place in sequel to the Manulife Financial Corporation acquisition of John Hancock Financial Services, Inc. in 2004.  Despite the integration having been successful, as is often the case in combining large organizations, John Hancock now has an excess of legal entities. As a result, this measure is part of the process of streamlining these entities to better position the company for future growth.
3. We expect the withdrawal and realignment will become effective at the end of the day on December 31, 2009 and your policy, certificate, or contract to be endorsed effective at that time to show John Hancock Life Insurance Company (U.S.A.) as the insurer

Useful reference pieces

New York John Hancock Questions and Answers on Merger

Download NYWithdrawalClientQA

Sample Cover Letter To Be Going Out to John Hancock clients (also presumably to structured settlement annuitants) along with the Q&A

Download Subsidiary Reorganization Cover Letter and Info Sheet

Q2 2009 Financials

John Hancock Life Insurance Company (U.S.A.) and John Hancock Life Insurance Company of New York., as provided by John Hancock

Download JHUSA and JHNY Financials Q2 09

AM Best Rates John Hancock Life A+ (Superior)

by John Darer

AM Best announced today that Manulife and its subsidiaries, which include structured settlement annuity issuer, John Hancock Life Insurance Company have been rated A+ (Superior) with a stable outlook. The company was formerly rated A++.

The AM Best announcement leaves New York Life Insurance Company as the only life insurance company issuing structured settlement annuities through intermediaries that has the highest A.M. Best ratings, in addition to the highest from the other major rating agencies.

The following structured settlement annuity issuers are rated A+ or better by AM Best:

New York Life Insurance Company, New York, NY                   A++XV
John Hancock Life Insurance Company, Boston, MA                A+XV
Metropolitan Life Insurance Company, New York, NY              A+XV
Pacific Life and Annuity Company, Newport Beach, CA            A+XV
The Prudential Insurance Company of America Newark, NJ      A+XV
Allstate Life Insurance Company, Northbrook, IL                     A+XV

In addition to New York Life Insurance Company, former structured settlement annuity issuer Massachusetts Mutual Life Insurance Company retains its A++XV status with A.M. Best.

Canada Unveils "Canadian Life Insurers Assurance Facility"

Reuters reports that Canadian Finance Minister Jim Flaherty unveiled details of an assistance facility for the country's life insurers aimed at ensuring the firms have access to the funds they need if credit markets seize up.

The Canadian Life Insurers Assurance Facility is similar to one already available to the Canadian banks and is designed as a backstop to global credit markets, to put Canadian insurers on an equal footing with foreign competitors who are benefiting from guarantee programs provided by their governments (e.g. TARP for US insurers)

Reuters, citing the Canada budget website said that "while Canadian insurers have seen their profits suffer or vanish amid a drop in business and huge investment losses, their balance sheets are relatively solid and the credit facility may never be needed".

The life insurance sector, both in Canada and abroad, has been hurt by weaker financial markets that caused investment losses and higher costs for minimum guarantee variable annuity products that are affected when market values fall.

Under the assistance facility, companies seeking to issue insured debt will be required to enter an agreement with the Canadian government. Ottawa will then offer a guarantee of timely payment for interest and principal payments for the wholesale debt instruments that qualify, and the insurer will pay a market-based fee on the amount of insured debt issued.

A number of life insurers issue structured settlements in Canada in addition to connections to the United States structured settlement market.  Manulife, a Canadian company is the parent of US insurer John Hancock and Canada Life is a former structured settlement annuity issuer.