by John Darer CLU ChFC CSSC RSP
Presidential Life Insurance Company has had its A.M. Best rating affirmed at B+ (Good). In a May 25, 2010 press release A.M.Bestrating service indicated that it had removed the notation "under review with negative implications" from both Presidential Life Insurance Company and its parent Presidential Life Corporation.
A.M. Best stated of Presidential, the former Nyack New York based structured settlement annuity issuer, that "the stable outlook reflects Presidential Life's increase in new business writings, continued profitable operating posture and favorable capitalization rates".
The Nyack, New York based life insurer may not be familiar to less experienced settlement professionals, lawyers and liability insurers, as it was primarily on the mainstream structured settlement radar in the late 1980s-very early 1990s. The company has had some significant structured settlement cases on the books for over 20 years and the A.M. Best news is as encouraging in a way, as last week's announcement of the upgrade of Transamerica Life Insurance Company from A (Excellent) to A+(Superior).
In a time when there continue to be banking jitters it is notable that there is movement in the area of confidence in the financial strength of insurers
Postscript
Presidential Life: Acquisition by Athene Annuity & Life Assurance Company in July 2012
Presidential Life Corp. and Athene Holding announced a definitive agreement for an Athene subsidiary to acquire Presidential Life for $14.00 per share in cash, representing an aggregate purchase price of approximately $415 million.
According to a release, the $14.00 per share price represents a premium of approximately 38 percent over the $10.14 per share closing price of Presidential Life common stock on July 12, and a premium of 40 percent over the average closing price for the five trading day period ended on such date.
Under the terms of the agreement, Presidential Life, which markets and sells a variety of fixed annuity, life insurance and accident and health insurance products through its subsidiary, Presidential Life Insurance Company, will be acquired by Athene's subsidiary, Athene Annuity & Life Assurance Company, a Delaware- domiciled insurer focused on retail fixed and index annuity sales and reinsurance.
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