Topic: Bank-Owned Life Insurance

BOLI Market Update for Q1 2022

The demand for bank-owned life insurance (BOLI) was strong in 2021. Newport experts anticipate a similar appetite for BOLI for the first quarter of 2022 and beyond.

The BOLI Report from Newport: Four Things You Need to Know Right Now

Watch Now: During this webinar, Newport's experts reveal the latest news in the BOLI market, compensation trends for bank executives, details about the House budget blueprint, and much more. 

BOLI Opportunities and Market Update

Watch Now: In this webinar designed for advisors, Newport's experts discuss opportunities in the bank-owned life insurance (BOLI) market, even after unprecedented 2021 BOLI sales have led to some unique challenges.
 

BOLI Considerations During Mergers and Acquisitions

More bank mergers and acquisitions were announced in April 2021 since the COVID-19 pandemic hit the United States in March 2020. Bank consolidations are complex, time consuming and costly, with focus justifiably on systems branch network and employee culture. But one area that is frequently overlooked is the acquired BOLI portfolio.

Improving BOLI Yields by Optimizing Death Benefits

With persistent low interest rates over the last decade, bank-owned life insurance (BOLI) owners have seen the impact on their cash value yields. While many focus on these bottom line yields, the potential for improving yields through death benefit optimization is often overlooked.  
 

Factors to Consider Before Executing a 1035 Exchange of BOLI Policies

Over the past two decades, Bank Owned Life Insurance (BOLI) has shown to be a great asset for banks, but occasionally a policy group may need to be replaced with a new product.  A replacement is typically executed via tax-free exchange under Internal Revenue Code Section 1035 (“1035 Exchange”). A 1035 Exchange should not be taken lightly, and there are many factors to consider before executing an exchange.

Potential Benefits of Consolidating BOLI Administration with Newport Group

Bank-owned life insurance (BOLI) has been widely accepted by banks of all sizes for well over two decades, and the number of BOLI policies on bank balance sheets has increased steadily during that time. As of September 30, 2018, approximately 3,500 U.S. banks reported owning BOLI, which in aggregate totals over $190 billion of cash value.

Long-Term Performance of General Account BOLI

Newport Group recently conducted a study of General Account BOLI policies to see how they performed versus comparable bank-eligible options. Find out how these BOLI policies fared.
 

Potential Implications to COLI/BOLI Policies Inherited Through an Acquisition

Included in the tax reform legislation passed last December were changes to the previously existing transfer for value rules. These changes were designed to address perceived abuses in the stranger-owned life insurance (STOLI) market, whereby entities are formed for no other reason than to acquire, own and be the beneficiary of insurance policies. 

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