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

Pacific Life Structured Settlements Improvements: Rated Age Term Extended to One Year

by John Darer CLU ChFC MSSC CeFT RSP CLTC

Pacific Life and Annuity, a structured annuity issuer, increased its rated age expiration date from 6 months to one year effective August 30, 2011.

The action is yet another improvement to the Pacific Life structured settlement program in response to market demand.

Pacific Life and Annuity recently loosened its lock-in fee policy by extending the time period that it will allow lock-ins for future purchase without charging a fee. 

The rated age extension brings Pacific Life and Annuity structured settlement quotes in line with a number of other New York admitted structured annuity issuers and recognizes the fact that cases develop over a period of time that often exceeds 6 months. This is a call to other structured annuity companies that still use 6 month terms to follow suit. 

Rated Ages and Structured Settlement Cost | How It Works 2024 (4structures.com)

Structured Settlements Lock-In | When Should a Lock in Be Used? - Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and John Darer Reviews (typepad.com)

Fast Facts About Pacific Life Structured Settlements

• Pacific Life Insurance Company is the underwriting company for structured settlement annuities in all states except New York.
• Pacific Life & Annuity Company is the underwriting company for structured settlement annuities for settlements with any connection to New York.
• Pacific Lifecorp issues a guarantee of the obligations of the periodic payment obligation assumed by Pacific Life & Annuity Services, Inc., pursuant to IRC 130(c), the qualified assignment company for structured settlements funded with either Pacific Life underwriting company.

• Pacific Life has been named one of the most ethical companies in the world by the Ethisphere for 2024. Prudential and Pacific Life Again Named Among Most Ethical Companies in the World - Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and John Darer Reviews (typepad.com)

Last updated April 14, 2024

 

AM Best Report Shows Structured Annuities Issued By Largest Insurers With Long Track Record of Financial Stability

by John Darer® CLU ChFC MSSC RSP CLTC

How stable are the life insurance companies that write structured settlement annuities? 

Top 100 US Life/Health Underwriters (currently or formerly writing structured settlements, ranked by admitted assets

Source: Best's Review July 2009, from insurer annual statements)

1. Metropolitan Life and affiliated companies  $436, 091,585

2. Prudential of America Group  $367,245,599

3. AIG Life Group  $312,735,278

4. Hartford Life Insurance Group $219,495,475

5. Manulife Financial (includes John Hancock) $217,242,055

7. New York Life Group $201,809,229

8  AEGON USA Group  $179,836,971

9. ING USA Life Group $178,478,036

13.MassMutual Finl Group $132,968,358

15. Pacific Life Group  $97,906,637

21. Allstate Financial $74,067,855

22. Genworth Finl Group $63,152,639

27. Aviva USA Group $43,367,009

36. AETNA Inc. $24,263,282

40. Symetra Life Group  $21,281,572

50.  USAA Life Group 15,174,746

59. Liberty Life Assurance Comapny of Boston $12,983,175

86. Presidential Life 3,613,990

91. Continental Assurance Company $3,208,225

Life/Health Insurers Rated A.M. Best  "A" or Better for 50 Years, or better** ( and current rating, number of years A or better)

Source: Best's Review July 2009

Aviva Life and Annuity Company, A,  81 years

Canada Life Assurance Company A+, 61 years

Hartford Life Insuarnce Company A, 60 years

Massachusetts Mutual Life Insurance Company  A++ 61 years

Metropolitan Life Insurance Company  A+ 82 years

New York Life Insurance Company, A++, 82 years

United of Omaha Life Insurance Company A+  54 years

Best's includes a disclaimer with its ratings which states that its Financial Strength Rating is an independent opinion of an insurer's financial strength and ongoing insurance policy based on a comprehensive quantitative and qualitative evaluation of a company's balance sheet strength, operating performance and business profile.

**While not noted by A.M. Best in the July 2009 report,  Symetra Life Insurance Company came about when SAFECO spun off Safeco Life Insurance Company and the company was renamed Symetra Life Insurance Company.  It should be noted by readers that during both the time period that the company was called SAFECO Life Insurance Company and the time after the spin off (when it was renamed Symetra Life Insurance Company),  the company has enjoyed at least an "A" rating from AM Best. The time periods span over 50 years.

Weiss Ratings: Strongest Structured Settlement Annuity Issuers

by John Darer CLU ChFC CSSC RSP

On June 10, 2010 Weiss Ratings updated its list of the strongest and weakest life insurance companies and annuity issuers. The following current and former structured annuity issuers made the list of the strongest annuity issuers. The Weiss rating for each company is shown.

• Allstate Life Insurance Company B+
• Amica Life Insurance Company A-
• John Hancock Life Insurance Company of New York A-
• Massachusetts Mutual Life Insurance Company A  (former structured annuity issuer)
• Pacific Life and Annuity Company A-
• New York Life Insurance Company A-
• New York Life Insurance and Annuity Corporation A-
• USAA Life Insurance Company A

In case you are not familiar with Weiss Ratings,  please note that "A+" is its highest rating

Also worth noting, there are no structured settlement annuity issuers on the Weiss weakest insurer list.

Weiss Ratings is the only one of the major rating agencies that is not paid by the company it rates to give a rating. Some say this removes a conflict of interest.

Ratings of Structured Settlement Company Pacific Life and Annuity Affirmed by Moodys and S&P

 

Pacific Life's ratings have been afformed

by John Darer CLU ChFC MSSC RSP CLTC

 

The third party financial ratings of Pacific Life Insurance Company and Pacific Life & Annuity Company were affirmed by Moody's and Standard & Poor's. 

Pacific Life and Annuity Company is a structured settlement annuity issuer and one of the handful of such companies that will write business in the state of New York.

Moody's affirmed an A1 rating (5th highest out of 21 rating categories) and also revised its outlook on the ratings from negative to stable.  Standard & Poor's affirmed a AA- rating (4th highest out of 21 rating categories) and maintained its negative outlook.

Fitch Ratings lowered Pacific's rating to A+ (5th highest out of 21 rating categories) and also revised its ratings outlook on both companies from negative to stable. As rating agencies reevaluate their rating methodology, downgrades have been more prevalent in the life insurance industry.  For example, Fitch Ratings issued 42 downgrades last year for life insurance companies.

Pacific Life was one of the major life insurance companies whose ratings initially suffered due to exposure to guarantees on its variable annuity business when the market tanked in 2008. It is comforting to see it return to a stable outlook.

 

 

 

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.

Structured Settlement Lingo | What is A Qualified Assignment?

by John Darer® CLU ChFC MSSC RSP CLTC

A qualified assignment is an assignment of an obligation to make future periodic payments which satisfies the requirements of Internal Revenue Code §130. The periodic payments must represent damages payable by the defendant, its liability insurer, or a QSF and excludable under §104(a)(1) or §104(a)(2)

In a structured settlement agreement, the original obligor (the defendant, insurance carrier for the defendant, or the trustee of a qualified settlement fund, assigns its obligation to make the future periodic payments called for in the settlement agreement to a "qualified assignee". Generally, a qualified assignment company is a special purpose company, which does little more than hold an annuity as a qualified funding asset to back up the obligations it assumes from Defendants, Insurers or qualified settlement fund trustees. A qualified assignment company may actually be an insurance company itself. The qualified assignment company is usually related to the life insurance company issuing the structured settlement annuity. The qualified assignment company typically purchases an annuity from the related life insurance company as a qualified funding asset pursuant to IRC §130(d). A qualified assignment requires the plaintiff's consent.

What is a Qualified Assignment? (4structures.com)

We've noticed that some in our industry state incorrectly (for example, see below) that the qualified assignment is "to a financially secure insurance company", or "an assignment to the life company".

"From the plaintiff’s perspective, an assignment to a financially secure insurance company gives them the assurance that future payments will be made as promised. For many plaintiffs, this assignment to the life company alleviates the stress of future contact with the defendant, their insurer, or any party responsible for the injury".

Of the companies offering structured settlements only the qualified assignee of New York Life (New York Life Insurance and Annuity Corporation) is a life insurance company. That being said many annuity issuers provide a wraparound guarantee of periodic payment obligation assumed by the affiliated qualified assignment company.

 

Madoff Ponzi Scheme and Structured Settlements. Any Exposure?

by Structured Settlement Watchdog

As the extent of the fallout from the massive Madoff Ponzi scheme continues to unfold, the breadth of investors and firms affected is already staggering. According to reports several Israel insurers, European Banks, the owners of the Mets, the IRA of the Chief Economist for Market Watch, numerous charitable foundations (some of whom have been forced to close) and the North-Shore-LIJ Health System. 

As if the financial services community needed another confidence sapper, the New York Post reports that international losses alone could exceed $8 billion!

While Mr. Madoff appears destined to meet his maker in jail (unless he does a Ken Lay), the reporting of the fraud in the financial press is likely to cause some confusion. Therefore 4structures.com, LLC has conducted a brief structured settlement survey of the primary structured settlement annuity issuers for official statements on their Madoff exposure, if any. As the responses come in they will be posted here.

Stuctured Annuity Issuers and other Litigation Recovery Management Vendors Who Have Declared NO EXPOSURE to the Madoff Ponzi Scheme

American General Life Insurance Company and American International Life Assurance Company of New York 

Download AIG structured settlements response to 4structures re Madoff

First Capital Surety and Trust Company

Download First Capital Surety Response on Madoff

Pacific Life and Annuity 

Download PL Response to 4structures re Madoff

(other structured annuity companies and litigation recovery management vendors will be listed as their responses come in)

 

 

Current and Former Structured Annuity Issuers Listed Among The Street.Com Ratings (Weiss) Strongest Life and Health Insurers in US

The most recent quarterly financial safety ratings from The Street.com Ratings (formerly Weiss Research ratings) include a number of structured settlement annuity issuers:

Allstate Life Insurance Company A-
American General Life Insurance Company B+
John Hancock Life Insurance Company A
Massachusetts Mutual Life Insurance Company A
Hartford Life and Annuity Insurance Company B+
Metropolitan Life Insurance Company B+
New York Life Insurance Company A
New York Life Insurance and Annuity Corporation (NY Life qualified assignment company)
Pacific Life and Annuity Company A
USAA Life  A
Variable Annuity Life Insurance Company (VALIC) A-

Ratings agencies such as Standard & Poors, Fitch and Moodys have recently come under fire from regulators such as Rep. Henry A. Waxman (D-California) who is Chairman of the Committee on Oversight and Government Reform.  On October 22, 2008 the committee held a hearing "Credit Rating Agencies and Financial Crisis in which the aformentioned agencies actions leading up to the financial crisis were examined. The objectivity of these agencies was called into question given the fact that they are compensated by the entities they rate.

On the other hand, The Street.Com expressly states "we don't accept compensation from the companies we rate for issuing the rating. Nor do we give the companies an opportunity to preview the ratings or suppress their publication if they're unfavorable. We are totally independent and unbiased because our loyalty is to you -- the customer".

Every quarter, The Street.Com Ratings evaluates the financial strength of more than 13,000 institutions, including life, health, and annuity insurers, property and casualty insurers, HMOs, Blue Cross Blue Shield plans, banks, and savings and loans.   In addition, it tracks the risk-adjusted performance of over 20,000 mutual funds and more than 6,000 stocks.

What may be surprising to the AIG "hacky sack dancers" is that both American General Life and former structured annuity issuer VALIC are on the list.

The Street.Com gives consumers, tort victims, potential and existing structured settlement annuity recipients, property casualty insurers, their attorneys, judges and the media a different perspective.

Allstate Life Rated Aa3 Moodys

Moodys Investor Services has rated Allstate Life Insurance Company and Allstate Life Insurance Company of New York Aa3. The rating change does not affect the core auto and home insurance business which remains at Aa2.

This one notch downgrade is consistent with current industry expectations and pressure being placed on rating agencies by federal regulators legislators who have recently attacked rating agency credibility.

Other structured settlement annuity issuers with an Aa3 from Moodys include Pacific Life and Annuity, Prudential Insurance Company of America, Hartford Life Insurance Company, American General Life Insurance Company and American International Life Assurance Comapny of New York.

AM Best reaffirmed Allstate's A+ (superior) rating on October 23, 2008