by John Darer CLU ChFC MSSC RSP CLTC
Former structured settlement annuity issuer Presidential Life Insurance Company continues the long way back that is a sharp contrast to the fate of Executive Life Insurance Company of New York (ELNY)
Both companies wrote structured settlement annuities, although Presidential was on alot smaller scale.
A September 23, 1992 article in the New York times said "Federal regulators yesterday accused a life insurance company of inflating its earnings in 1989 by failing to tell investors about sharp declines in its junk bond holdings. The Securities and Exchange Commission said the case against the Presidential Life Corporation was the first against a financial institution for misrepresenting the health of a portfolio of high-yield debt securities"
I have a brief recollection of a conversation I had with former Presidential chairman Herb Kurz in or about 1991 bemoaning how Presidential was being dragged to the edge of the ELNY furore.
Presidential LIfe Insurance Company vs Executive Life Insurance Company of New York
- Presdential Life Insurance Company WAS NOT taken over by the New York State Insurance Department and was permitted to operate a s going concern.
- The New York State Liquidation Bureau DID NOT manage its estate for 20 years like it did for ELNY.
- Policyholders and annuity payees, including payees with Presidential Life Insurance Company structured settlements have been paid in full, unlike ELNY annuitants.
In 2011 A.M. Best increased Nyack, New York based Presidential Life's ratings to B++ and the company just announced an 81% increase in net income for 2011 on March 15, 2012.
Hindsight…
Postscript
Presidential LIfe was acquired by Athene Holdings and on 10/1/2013 was renamed Athene Annuity and Life Assurance Company. New York business is under Athene Annuity and LIfe Assurance Company of New York
Apollo-backed Athene to buy Presidential Life for $415 million | Reuters July 13, 2012
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