We would love to hear from you. Click on the ‘Contact Us’ link to the right and choose your favorite way to reach-out!

wscdsdc

media/speaking contact

Jamie Johnson

business contact

Victoria Peterson

Contact Us

855.ask.wink

Close [x]
pattern

Industry News

Categories

  • Industry Articles (17,444)
  • Industry Conferences (3)
  • Industry Job Openings (3)
  • Moore on the Market (189)
  • Negative Media (139)
  • Positive Media (73)
  • Sheryl's Articles (648)
  • Wink's Articles (257)
  • Wink's Inside Story (230)
  • Wink's Press Releases (97)
  • Blog Archives

  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • November 2010
  • October 2010
  • September 2010
  • August 2010
  • July 2010
  • June 2010
  • May 2010
  • April 2010
  • March 2010
  • February 2010
  • January 2010
  • December 2009
  • November 2009
  • October 2009
  • August 2009
  • June 2009
  • May 2009
  • April 2009
  • March 2009
  • November 2008
  • May 2008
  • February 2008
  • August 2006
  • AIG Says It Settled Legal Dispute Over ‘Life Settlements’

    March 1, 2016 by Leslie Scism

    End of Coventry First Dispute May Pave Way for Insurer to Sell $3.6 Billion Portfolio

    American International Group Inc. said it has resolved a legal dispute with a firm that helped it amass a large investment portfolio of “life settlements” in the 2000s.

    The agreement could pave the way for AIG to sell the portfolio, which AIG valued at $3.6 billion as of the end of last year. The life settlements are among several “nonstrategic assets” that AIG identified for sale in a strategy update Jan. 26. The company is seeking to return $25 billion in capital to shareholders through next year.

    Life settlements are policies typically sold by ill or elderly people to investors, often because they can’t afford or no longer need the coverage. Investors bet the future death benefit will exceed the cash spent to buy the policy and premiums they will need to pay while waiting for the person to die. Critics sometimes call them “death bets.”

    The settlement, on confidential terms, ends litigation between AIG and Coventry First LLC, a suburban Philadelphia firm.

    In a 2014 lawsuit in federal court in Manhattan, AIG accused Coventry and its founder, philanthropist Alan Buerger, of running an “egregious criminal scheme” that inflated prices and cheated it of at least $150 million. Coventry disputed the allegations and maintained AIG was using the allegations of wrongdoing as a pretext to get out of a servicing contract, which had terms that industry participants said were lucrative to Coventry.

    While a tiny portion of AIG’s overall asset base of approximately $500 billion, the life-settlement holdings make AIG one of the biggest owners of the investments in this obscure corner of the financial markets.

    The litigation with Coventry had complicated AIG’s effort to divest the holdings, according to market participants. AIG declined to comment beyond a brief statement.

    U.S. District Judge Jed S. Rakoff in Manhattan heard testimony in a nonjury trial last summer and fall and was poised to deliver a verdict. Some key early rulings went against Coventry, including dismissal of its claims against AIG for alleged breach of contract.

    Among the terms of the confidential settlement, AIG’s Lavastone Capital LLC affiliate, which holds the life settlements, “will be able to transfer Coventry’s servicing of AIG’s life settlements portfolio to another party, and Lavastone will be able to freely market or sell policies that were originated by Coventry,” according to a joint announcement from AIG and Coventry.

    Apollo Global Management LLC and Blackstone Group LP, which have acquired life-settlement portfolios from financial firms or hedge funds over the past couple years, are expected to be among those examining potential deals with AIG, according to industry experts.

    AIG is under pressure from investor Carl Icahn to break itself into three parts as a way to shed new federal regulation as a “systemically important financial institution” and dramatically improve results. AIG has maintained an immediate breakup isn’t in the best interests of shareholders, but agreed in early February to expand its board to give seats to a representative of Mr. Icahn and another critic, billionaire investor John Paulson.

    As of Dec. 31, AIG’s Lavastone unit held 4,554 policies with total anticipated death benefits of nearly $15 billion, according to AIG’s financial filings.

    Write to Leslie Scism at leslie.scism@wsj.com

    Originally Posted at The Wall Street Journal on February 29, 2016 by Leslie Scism.

    Categories: Industry Articles
    currency