October 8, 1991 |
The French-based investment group that has made a $3-billion bid for failed Executive Life Insurance Co. will revise its offer this week in an effort to make it more attractive to policyholders. Officials of the group, which includes Altus Finance and Mutuale Assurance Artisanale de France, said Monday that the revisions will allow policyholders greater access to their investment funds and will fix a handful of problems that agents and policyholders had complained about.
CALIFORNIA | LOCAL
November 18, 1991
After months of nerve-wracking uncertainty, the rescue of failed Executive Life Insurance Co. took a giant step forward. You could almost hear a collective sigh of relief from hundreds of thousands of policyholders. California Insurance Commissioner John Garamendi has recommended that a French consortium be allowed to buy the Los Angeles insurer for $3.55 billion.
October 13, 1991 |
Policyholders of Executive Life Insurance Co. are now expected to recoup the bulk of their investments in the failed insurer because of unexpectedly strong bids to acquire the firm and news Saturday that the insurance industry has secured surprisingly strong financial support for its own offer, analysts said.
December 3, 2003 |
France said Tuesday that it had rejected a settlement proposal by U.S. authorities over charges arising from the buyout of bankrupt California insurer Executive Life. In a statement, the French finance ministry said talks with federal prosecutors in California had ended in failure "despite all the efforts made over several weeks." This latest round of negotiations lasted six weeks.
February 15, 2005 |
Just days before a scheduled trial, one of the lesser players in a multibillion-dollar legal battle over the 1991 collapse of Executive Life Insurance Co. has settled its part of the case with state Insurance Commissioner John Garamendi for $80 million. Aurora National Life Assurance Co. of Inglewood also agreed over the weekend to provide witnesses to bolster Garamendi's case during the trial, said Norman Williams, a spokesman for the state Department of Insurance.
February 14, 2005 |
Thirteen years ago, then-California Insurance Commissioner John Garamendi boasted that he couldn't think of "a better gift for policyholders" than his sale of Executive Life Insurance Co. to a group of French investors. The deal with banking giant Credit Lyonnais and MAAF Vie, a small Paris-based insurance company, ensured that Executive Life would be "rehabilitated" and that policyholders' investments were "secure," the commissioner told reporters in December 1991.
August 8, 1991 |
Question: When will the deal be completed? Answer: Regulators expect to close the deal within 80 days. However, it requires court approval, so the timetable could be slightly different. Q: What happens to policyholders? A: Policyholder accounts will be restructured and essentially transferred to a new company, tentatively called Newco, which will hold no more than 10% of its assets in junk bonds. Based on current estimates of Executive Life's assets and liabilities, the restructuring reduces cash values of each policy to roughly 81% of their current values.
October 3, 1991 |
A partnership headed by San Francisco investment banking firm Hellman & Friedman said Wednesday that it would make a bid to acquire Executive Life Insurance Co., the Los Angeles company seized by state regulators in April. Hellman & Friedman, whose partners include the Zell/Chilmark Fund and Fund American Cos., becomes the fourth group to bid or announce intentions to make an offer for the junk bond-laden life insurer. No details of the Hellman & Friedman proposal were released.
September 14, 1991 |
Some customers of Executive Life Insurance Co. may find the cash values of their policies seriously eroded under the rehabilitation plan recently proposed by Insurance Commissioner John Garamendi, some insurance agents maintain. Last month, Garamendi revealed a plan to sell Executive Life to a consortium of French insurers for $3 billion.
September 20, 1991 |
The insurance industry Thursday proposed a bold rescue plan for failed Executive Life Insurance Co. of California, claiming it would provide policyholders significantly more than a previous bid by a French consortium. The National Organization of Life and Health Insurance Guaranty Assns., which represents 48 state guaranty funds, said its plan would pay 95% of the company's 372,000 policyholders all death benefits and annuity payments and 100% of their account values.