Term Life Insurance Articles
AIG Closes Sale of Its Life Insurance Premium Finance Business
2009-08-01
American International Group Inc. (AIG), one of the largest insurance companies in the United States, recently completed the sale of its life insurance premium finance business to First Insurance Funding Corp., a subsidiary of Wintrust Financial Corp. of Lake Forest, Illinois.
The Associated Press reported that "the sale gave First Insurance Funding Corp. a majority of AIG's U.S. life insurance premium finance portfolio, as well as other assets for $679.5 million."
According to the company's website, "First Insurance Funding Corp. is one of the largest premium finance lenders in the United States. With the recent acquisition of A.I. Credit Corp's life insurance financing portfolio, it has become the largest traditional life insurance premium finance lender in North America."
According to numerous news reports, AIG has been hit hard by the sagging economy and the financial crisis facing numerous corporations. A government bailout loan in the fall of 2008 prevented the demise of the company, which had gotten into trouble by backing trillions of dollars of risky financial products during last year's home mortgage crisis. Since the bailout, which the Associated Press reported to be worth nearly $183 billion, AIG has been actively seeking to shed assets and cut costs.
The Associated Press is reporting that AIG confirmed that if certain conditions are met, First Insurance Funding will also receive an additional amount of certain specified life insurance premium finance assets for $61.2 million.
First Insurance Funding specializes in life insurance premium financing. Financing life insurance or term life insurance is a valuable strategy for individuals who need life insurance, but want to defer the majority of the cost of their premiums. More importantly, it provides an individual with more financial flexibility and more opportunities, such as leveraging a productive asset, and it allows one to be able to continue to employ capital for existing and future investments.
Some would consider life insurance to be a risky financial product in the current economic climate. However, term life insurance policies are a bit safer. Term life insurance provides death protection for a stated time period, or term. It’s a simple form of life insurance that was created to provide temporary protection on an affordable budget. Term life insurance boasts unique benefits that appeal to certain sectors of individuals. It can be purchased in large amounts for an economical cost, and was initially designed with short-range goals in mind. Some of these situations include coverage to pay off a loan, or additional protection as younger couples begin to raise children.
Wintrust Financial, the parent company of First Insurance Funding Corp., is a financial holding company with assets in excess of $11 billion. It operates 15 community bank subsidiaries that are located in Illinois and Wisconsin. The company’s stock is also traded on the NASDAQ Stock Market, under the abbreviation of WTFC.
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American International Group Inc. (AIG), one of the largest insurance companies in the United States, recently completed the sale of its life insurance premium finance business to First Insurance Funding Corp., a subsidiary of Wintrust Financial Corp. of Lake Forest, Illinois.
The Associated Press reported that "the sale gave First Insurance Funding Corp. a majority of AIG's U.S. life insurance premium finance portfolio, as well as other assets for $679.5 million."
According to the company's website, "First Insurance Funding Corp. is one of the largest premium finance lenders in the United States. With the recent acquisition of A.I. Credit Corp's life insurance financing portfolio, it has become the largest traditional life insurance premium finance lender in North America."
According to numerous news reports, AIG has been hit hard by the sagging economy and the financial crisis facing numerous corporations. A government bailout loan in the fall of 2008 prevented the demise of the company, which had gotten into trouble by backing trillions of dollars of risky financial products during last year's home mortgage crisis. Since the bailout, which the Associated Press reported to be worth nearly $183 billion, AIG has been actively seeking to shed assets and cut costs.
The Associated Press is reporting that AIG confirmed that if certain conditions are met, First Insurance Funding will also receive an additional amount of certain specified life insurance premium finance assets for $61.2 million.
First Insurance Funding specializes in life insurance premium financing. Financing life insurance or term life insurance is a valuable strategy for individuals who need life insurance, but want to defer the majority of the cost of their premiums. More importantly, it provides an individual with more financial flexibility and more opportunities, such as leveraging a productive asset, and it allows one to be able to continue to employ capital for existing and future investments.
Some would consider life insurance to be a risky financial product in the current economic climate. However, term life insurance policies are a bit safer. Term life insurance provides death protection for a stated time period, or term. It’s a simple form of life insurance that was created to provide temporary protection on an affordable budget. Term life insurance boasts unique benefits that appeal to certain sectors of individuals. It can be purchased in large amounts for an economical cost, and was initially designed with short-range goals in mind. Some of these situations include coverage to pay off a loan, or additional protection as younger couples begin to raise children.
Wintrust Financial, the parent company of First Insurance Funding Corp., is a financial holding company with assets in excess of $11 billion. It operates 15 community bank subsidiaries that are located in Illinois and Wisconsin. The company’s stock is also traded on the NASDAQ Stock Market, under the abbreviation of WTFC.
