Berkshire Hathaway Structured Settlements Dual Guarantee
John Darer • January 16, 2020
Unmatched Two Company Guarantee on Large Cases
Berkshire Hathaway has an appetite to write structured settlement annuities to fund long term needs. Whether that be a cash flow that starts right away and payable for 50 years certain, or one that is deferred for quite some time before payments start, there is a very good chance that a Berkshire Hathaway company will be highly competitive.
Berkshire Hathaway Annuity Issuers for Structured Settlement Annuities
Berkshire Hathaway underwrites structured settlement annuities through Berkshire Hathaway Life Insurance Company of Nebraska (BHLN) and in New York, through First Berkshire Hathaway Life Insurance Company (FBHL). In addition National Indemnity Company issues periodic payment reinsurance.
How it works
- A periodic payment obligation is established in the Settlement Agreement, obligating the Defendant or Defendant's insurer(s) to make structured settlement payments to the Plaintiff, or to a trust for the benefit of the Plaintiff.
- The obligation to make the structured settlement payments is assigned, by way of a qualified assignment, to BHG Structured Settlements, Inc. (BHGSS).
- BHGSS funds its obligation through the purchase of an annuity from either BHLN or FBHL, if it's a New York structured settlement.
- BHGSS' obligation to make the structured settlement payments is, in turn, guaranteed by Columbia Insurance Company, which as of 12/31/2018 had $19.2 Billion in Statutory Surplus. Financial Ratings of A++ A.M. Best AA+ Standard & Poors.
- For structured settlements funded with $3 million or more in premium to BHLN, there is a dual guaranty, with National Indemnity Company being the dual guarantor. As of 12/31/2018, National Indemnity had Admitted Assets of $228.2 billion and Statutory Surplus of $122.5 billion. Financial Ratings of A++ by A.M. Best and AA+ by Standard & Poors
"Measured by net premium written, the largest U.S. reinsurer by far was National Indemnity Co., a unit of Berkshire Hathaway Inc., which reported $19.33 billion in premium", Gavin Souter, Business Insurance November 25, 2019, citing a report by the Reinsurance Association of America.
USAA Life Insurance Company, an A++ rated insurance company, issues structured settlement annuities with 1%, 2% and 3% COLAs. USAA Life structured settlements are exceptionally compatitive on lifetime benefit payments with long duration certain periods for ages under 35.
Owners of highly appreciated NY businesses or NY real estate may benefit from a structured installment sale tax deferral program as an alternative to a 1031 exchange. MetLife's structured installment sale program is now available in NY and in all 50 states. Call 888-325-8640 for more info
A qualified assignment is part of the process to establish a structured settlement that enables a Defendant, Insurer, or Qualified Settlement Fund, to achieve a complete novation of the future periodic payment claim established by suit or agreement, through a substitution of obligors.
An annuity and a structured settlement walked into a bar, how do you tell them apart? 4structures' John Darer reviews the differences for you right here.
A lifetime structured settlement annuity turns part of your settlement recovery into guaranteed income you can’t outlive that is contractually guaranteed by a regulated life insurance company. A lifetime annuity is sometimes referred to as longevity insurance.
Structured settlement annuities can be very helpful to the budgeting process by providing guaranteed income streams and deferred lump sum payments tailored to specific budget needs and time frames identified in the settlement planning process.
Structured settlement receivables are often deceptfully marketed to investors as annuities. When the originating structured settlement factoring company buys structured settlement payments in a structured settlement factoring transaction, they are buying a receivable not an annuity.
Avoid constructive receipt if a structured settllement or structured attorney fee is to be established. Care must be taken to avoid constructive receipt.
Financial services provider USAA ranks 94th on Fortune 500. USAA Life Insurance Company, which earns the top rating of A++ from AMBest is often super competitive on longer term payment streams.
John Darer reviews Prudential Income Advantage structured settlement annuity, which provides indexed structured settlement annuity option with the potential to grow personal injury settlement funds while offering protection from market declines. 2 IRS Private Letter Rulings!
