AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of "a-" (Excellent) of Fidelity Life Association, A Legal Reserve Life Insurance Company (Fidelity Life) (Chicago, IL). FLA is a wholly owned subsidiary of Vericity, Inc. (Vericity). The ratings reflect Fidelity Life's balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management. Fidelity Life's risk-adjusted capitalization is assessed at the strongest level, as measured by the Best's Capital Adequacy Ratio (BCAR), and supports the company's...
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Poof! Did you know that your income-tax benefits can be reversed too? While drawing up a chart of tax-saving investments for the year, don’t forget about the conditions that could nullify the tax benefit under Section 80C. Exiting investments too early could lead to reversal of taxation benefits. With employers dishing out investment declaration forms these days, many taxpayers are exploring options to minimise tax outgo by claiming the right deductions under Section 80 C for the financial year 2022-23. But that alone isn’t enough to save taxes. You also need to be aware of the riders wherein the tax benefits under the Section 80 C bucket can be reversed. “ Deductions come with certain...
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The Internal Revenue Service has posted a private letter ruling weighing in on efforts by Pennsylvania insurance regulators and the regulators’ vendors to rehabilitate Senior Health Insurance Company of Pennsylvania. The proposed rehabilitation strategy should not affect the federal income taxes of the affected policyholders, according to Daniel Phillips, a senior counsel in the IRS Financial Institutions & Products division. Phillips does not name the insurer that asked for the ruling in the version posted on the IRS website, but a representative for the Pennsylvania Department of Insurance said in an email that the ruling was issued at the Pennsylvania department’s request. What It...
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The American Council of Life Insurers filed an amicus brief in U.S. District Court in support of a lawsuit seeking to overturn a Trump-era Department of Labor exemption that established a fiduciary duty for rollover recommendations. The brief, filed Monday in District Court in Dallas, alleges the Labor Department is revamping its 2016 Obama-era fiduciary rule even though the rule was struck down in court. The 2016 fiduciary rule broadened the definition of when a person or entity was taking on fiduciary responsibilities, replacing the five-part test that had been used to determine whether an investment professional or financial institution is a fiduciary. In 2018, a three-judge panel at the...
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Wyden Launches Investigation Into Private Placement Life Insurance Schemes Lombard International, subsidiary of private equity giant Blackstone, is the market leader in private placement life insurance Washington, D.C. – Senate Finance Committee Chair Ron Wyden, D-Ore., today launched an investigation into the growing use of private placement life insurance by the wealthiest Americans to avoid and evade taxes. Wyden began the investigation with a letter to Lombard International, a subsidiary of private equity giant Blackstone. Wyden wrote, “Lombard International (Lombard) is one of the market leaders in the PPLI industry and has described PPLI as a ‘core element of...
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Founded in 1933, the International Rescue Committee is a leading non-sectarian non-profit organization providing emergency relief, protection, rehabilitation assistance, resettlement services and advocacy for refugees and victims of oppression or violent conflict. Staff and volunteers provide shelter, medical and public health assistance, education, training, and income-generating programs for refugees in nearly 30 countries. IRC also helps refugees resettle in the United States. IRC’s field offices across the US ensure that new arrivals have food, shelter, and clothing. IRC staff work with refugees to help them gain self-sufficiency through English language classes, job training and...
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Derivatives can make an annuity issuer’s earnings look messy, but they helped Jackson sail smoothly through the spring stock market storms. Thanks to hedging arrangements, the annuity giant is reporting $3 billion in net income for the quarter ending June 30, on just $6.5 billion in revenue. During a conference call this week, Jackson CEO Laura Prieskorn told securities analysts that the hedging strategy worked as intended, with costs that were in line with expectations. “We believe the effectiveness of our hedging strategy is most evident in challenging environments, which was the case this quarter,” Prieskorn said. What It Means Some of your clients may be using annuities in an effort to...
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American Income Life is a leading provider of supplemental insurance coverage and a subsidiary of Torchmark Corporation, one of the nation’s largest publicly traded financial services holding companies. Founded in 1951, American Income Life Insurance Company now provides coverage to over 2 million policyholders, including members of credit unions, labor unions, and associations and their families. Headquartered in Waco, Texas, American Income Life is licensed in Canada and 49 states, including Washington, DC, and is also registered to conduct business in New Zealand. The company's New York licensure is maintained through its wholly owned subsidiary, National Income Life Insurance...
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Sun Life Financial has reported net income of US$758 million in the second quarter (Q2) of 2022, down 13% from the US$900 million reported in the same period last year. Year-to-date, the group’s reported net income is US$1,643 million, down from US$1,837 in the prior year period. The life insurance giant’s underlying net income increased by 1% from Q2 2021 to US$892 million in the three months ended June 30, 2022. Year-to-date, the group’s underlying net income was US$1,735 million, up from US$1,733 in the prior year period. In the second quarter, Sun Life’s reported return on equity (ROE) was 13.1%, down from 16.3% in Q2 of 2021. The insurer’s underlying ROE...
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NEW YORK--( BUSINESS WIRE )--New York Life, America’s largest mutual life insurer , today released the company’s 2020-2021 Environmental, Social, and Governance (ESG) Report. The report highlights New York Life’s approach to ESG, which is rooted in our core values of humanity and integrity, supported by our mutuality and financial strength. “ We must be thoughtful about—and, more importantly, accountable for—our decisions and actions because, in the bigger picture, we are all in this together,” write CEO and President Craig DeSanto and Chairman Ted Mathas in the Report’s opening letter. “ Our impact extends beyond the scope of our business operations and supporting our most immediate...
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