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.
Leave a Reply