by John Darer® CLU ChFC MSSC RSP CLTC
The structured settlement industry is abuzz today with Aviva’s sudden decision to stop writing new structured settlement business as of December 15, 2008.
Aviva is not going out of business-it’s just ending this particular line
Aviva Life and Annuity Company, along with its New York subsidiary, holds an A+ rating from AM Best and is part of one of the largest insurance groups globally, making it one of the fastest-growing life insurance companies in the U.S.
No signs in the run up
Who could have seen this coming? Aviva’s structured settlement business had grown rapidly over the past year. Just under seven weeks ago, at the San Francisco NSSTA Regional meeting, I had the chance to dine with several Aviva and Platinum representatives, and I walked away thinking their business was booming, fueled in part by uncertainty stirred up by the financial press about some of their rivals.
- The company’s structured settlement growth was notable because it had no related property and cacualty insurance company to feed it business.
- Aviva, and its predecessors CGU LIfe and Commercial Union Life were known for competitive underwriting and pricing, particularly on the older ages and was a great market for the small cases.
- In addition the company had a periodic payment reinsurance product for workers comp.
- In addition the company was one of the few to accept qualified assignments from single claimant qualified settlement funds (also known as single claimant 468B or single claimant QSF).
- How this will affect certain elements in the plaintiff settlement planning market remains to be seen.
Aviva is a structured settlement annuity market that will be missed
This author’s thoughts are with those in the structured settlement marketing departments of Aviva and Platinum for whom this unfortunate reality has occurred during the holiday season.
Structured Settlement Annuity Market going into 2009 after Aviva exit
As a result of the Aviva decision, the structured settlement market has the following remaining underwriters include
- American General Life Insurance Company
- American International Life Assurance Company of New York
- Metropolitan Life Insurance Company
- New York Life Insurance Company
- John Hancock Life Insurance Company
- Allstate Life Insurance Company and its New York company
- Liberty Life Assurance of Boston
- The, Prudential Insurance Company of America
- Hartford Life Insurance Company
- Pacific Life and Annuity Company
- Symetra Life Insurance Company.
Leave a Reply