Executive Life Insurance Company
Industry | Mike Milken Robert Sobel |
---|---|
Subsidiaries | Executive Life Insurance Company of New York |
Executive Life Insurance Company (ELIC) was once the largest life insurance company in California. Its financial problems and subsequent insolvency in April 1991 shocked its policyholders and the financial world.[1]
At the time, First Executive was the biggest insurer ever to fail, which resulted primarily from money-losing investments in
After the State of California took over Executive Life, it sold the company's junk-bond portfolio to Altus Finance, a unit of
In 2003, Crédit Lyonnais and others agreed to pay $771 million in settlements resulting from false statements to bank regulators in connection with the acquisition of junk bonds and the insurance business of the failed Executive Life Insurance Company of California.[5]
In 2001, Swiss Re took control of the Aurora National Life policies; Swiss Re fully acquired Aurora National Life in 2012.[6][7] In 2014, Aurora National Life was sold to Reinsurance Group of America.[8]
A subsidiary, Executive Life Insurance Company of New York (ELNY), was seized by the state of New York, who sold the majority of the business to MetLife, retaining the structured settlement book of business. Due to mismanagement, ELNY was ordered to liquidate.[9] Guaranty Association Benefits Company took over the assets of ELNY in 2013.
See also
References
- NOLHGAwebsite
- Money. New York.
- ^ "The French Connection - Forbes". Retrieved 2015-01-05.
- ^ Rossant, John (July 29, 2001). "The Sword over Lyonnais". BusinessWeek. New York.
- ^ "Credit Lyonnais and Others to Plead Guilty and Pay $771 Million in Executive Life Affair" (Press release). Washington, D.C.: United States Department of Justice. December 18, 2003. Retrieved 2013-11-24.
- ^ "Swiss Re Affiliate Acquires Policies Of Executive Life Successor". LifeHealthPro. Retrieved 2015-01-05.
- ^ "Aurora National Life deal closed in August". Retrieved 2015-01-05.
- ^ "Reinsurance Group buying Aurora National Life : Business". Retrieved 2015-01-05.
- Summit Business Media. Retrieved November 24, 2013.