Enhancing Investment Results with ICOLI
Insurance companies are continuously looking for investments that optimize their risk/return profile with a focus on improving earnings, surplus, and financial strength. These investments solve many business purposes and must comply with complex insurance regulatory requirements. What if the insurance company could improve its investment earnings and maintain or improve its overall investment structure and financial strength?
Insurance company owned life insurance (ICOLI) is one of the few vehicles that can help improve tax-adjusted earnings, receive favorable risk based capital (RBC) treatment and enhance the investment choices available to insurers.
Many life, health and P&C companies use ICOLI to achieve a more diversified investment portfolio and comply with their surplus investment policy guidelines. The interest in ICOLI has increased as the economic environment has left insurers with fewer alternatives to improve their investment results.
Suite of Services to Help Insurance Companies using Insurance Company-Owned Life Insurance
Newport Group’s ICOLI diagnostic evaluates the key elements necessary to structure, implement and maintain an efficient ICOLI program. Utilizing the information gathered in this diagnostic, along with your current goals and objectives, we consult with you on the ideal strategy for your company’s ICOLI program.
We address and provide thorough documentation of the specific action steps and risks that regulators require to be identified prior to the purchase of ICOLI. We also provide ongoing regular reporting to assist in meeting your continuing regulatory requirements.
Newport Group provides detailed product evaluations and recommendations to assist in selecting the right asset classes and managers. We construct and monitor an efficient mix of eligible investments designed to generate the highest level of expected return for any given level of risk.
Our complete suite of administrative services are designed to reduce the burden on your organization. Specific deliverables include a program implementation timeline, accounting and financial reporting, policyowner services and an annual plan review.
Insurance products are offered to institutional clients through non-affiliated insurance companies. Securities are offered through Newport Group Securities, Inc., 300 International Parkway, Suite 270, Heathrow, FL 32746. Member, FINRA.