Liberty Life of Boston Sale to Lincoln  Financial Group

John Darer • February 27, 2018

The Important Questions Are Answered Here | What Happens to LLAC Notice of Financial Commitment, LMIC Guarantees | BARCO and more

Liberty Mutual Structured Settlements 2018

On January 19, 2018 an announcement was made concerning Lincoln Financial Group’s acquisition of Liberty Life Assurance Company of Boston, a writer of structured annuities used in qualified and non qualified structured settlements. Please see the write up on our Structured Settlements 4Real®Blog. Liberty Mutual has now issued an FAQ clarifying questions concerning certain guarantees and commitments that will be of interest to clients and anyone with a structured settlement funded with Liberty Life Assurance Company of Boston.


Q: After Lincoln Financial Group’s acquisition of Liberty Life Assurance Company of Boston (“LLAC”) (the “Transaction”) is finalized, what will happen to (1) Liberty Mutual Insurance Company’s (“LMIC”) Guarantee of LLAC, (2) LLAC’s Guarantee of Liberty Assignment Corporation (“LAC”), and (3) LLAC’s financial commitment to BARCO Assignments, Ltd. (“BARCO”)?

(1) LMIC Guarantee of LLAC
The terms of this Guarantee provide that, in the event of an acquisition of LLAC, the Guarantee will terminate if after the Transaction LLAC has a S&P and A.M. Best rating equal to or higher than those issued to LLAC prior to the Transaction. As a condition to closing the Transaction, the parties have agreed to confirm with S&P and A.M. Best that the ratings of LLAC have not been downgraded below “A” or “A”, respectively. Therefore, this Guarantee will terminate upon the closing of the Transaction.

Please reference the following for the most recent AM Best and S&P financial strength ratings of Lincoln Financial Group:

www.ambest.com
www.standardandpoors.com
www.lfg.com/public/aboutus/investorrelations/financialinformation/ratings

(2) LLAC Guarantee of LAC
LLAC will continue to guarantee all obligations assumed by LAC under qualified assignments should LAC default. Once the Transaction is finalized, Lincoln Financial Group will become the sole owner of LLAC and the Guarantee will remain in effect.

(3) LLAC Financial Commitment to BARCO
The Net Worth Maintenance Agreement (“NWMA”), whereunder LLAC ensures the solvency of BARCO, will remain in effect. LLAC’s obligations under the NMWA, however, have been novated to Liberty Mutual Group Inc.

Q: What is the status of BARCO following LLAC’s exit from the non-qualified business and its acquisition by Lincoln Financial Group?

Ownership
Liberty Mutual Group Inc. is now the sole owner of BARCO.

Management
Going forward, BARCO will be managed by Cafico International in Dublin, Ireland. All email correspondence should be directed to: barco@caficointernational.com.

Barco Assignments, Ltd
c/o Cafico International
2nd Floor Palmerston House
Fenian Street
Dublin D02 WD37
Ireland

#LibertyLifeInsuuranceCompanyofBoston

#BARCO

#BARCOAssignments

#LibertyMutual

#NetWorthMaintenanceAgreement











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