• WHITEPAPERS & ARTICLES

Enhance Yield, Improve the Balance Sheet and Fund Liabilities with Insurance Company-owned Life Insurance

Corporate-Owned and Bank-Owned Life Insurance have long been used as an effective tool for the dual purpose of financing employee benefit liabilities and optimizing the after-tax yield on invested assets. And in this continuing low interest rate environment, insurance companies are finding that Insurance Company-Owned Life Insurance (ICOLI) provides an opportunity to enhance portfolio yields in a manner that is immediately accretive to earnings and has a positive capital impact. The flexibility of the ICOLI structure allows a purchaser to broaden its asset allocation strategy without a negative RBC impact or, perhaps, to simply “clean up” its Schedule BA. As of December 31, 2018, more than a dozen well known insurance companies each reported ICOLI assets in excess of $1 billion.

If you are considering an ICOLI investment or if you would simply like to better understand the potential benefits and the related tax, accounting and regulatory issues, we invite you to review our recently posted white paper, “Enhance Yield, Improve the Balance Sheet and Fund Liabilities with ICOLI”.

Insurance Company-Owned Life Insurance (ICOLI) provides an opportunity for insurance companies to enhance portfolio yields in a manner that is immediately accretive to earnings.