Private Placement Life Insurance and Variable Annuity (PPLI/PPVA)
This product is becoming increasingly popular as major hedge funds begin to understand the tax and marketing advantages of such products. IndemnityFirst have developed IDF Capital LLC –
US Private Placement Variable Annuity platform
This effectively provides the tax advantages customarily enjoyed by life insurance products. It allows for roll up of gains without capital and income tax, defers income tax and avoids withholding tax. That it is a platform means that for the HNWI or asset manager, wishing to wrap his assets and profit from these tax advantages, cost of entry is extremely low. New funds and portfolio wrappers can be created readily.
The first of the funds which invests in Life Insurance contracts is complete,
Capital Protection Fund
Capital Protection Fund this is a new development for life settlement funds in that it recognizes the fact that these assets are not liquid and is therefore sold through the tax advantaged annuity contract consequently more readily matching the investor’s time horizon with that of the product. It also includes an attractive conservative valuation model allowing for double digit returns.
The PPVA is a private placement variable deferred annuity contract issued by a U.S. life insurance company or an offshore life insurer that has made an IRC Sec. 953(d) election to be treated as a U.S. taxpayer. The PPVA contract is institutionally priced and transparent allowing for complete customization of the investment menu to include multiple real estate investments.
A second Fund formed as a Qualifying investment Fund (QIF) is being launched from Dublin and is an Oil & Gas Reserve Rights Fund – American Minerals International.
A new product providing stop loss insurance on life insurance contracts will be launched in the fourth quarter of 2014 this uses the increasingly popular Captive Insurance Company structure.
Asset backed bond
Luxembourg Regulated and Listed asset backed bond is being developed for European clients. Using life settlements and stop loss guarantees this product will be ‘best of class’