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Credit Research
To discover the Brentwood Difference, one must delve into the credit research
conducted by our analysts at Brentwood Asset Advisors.
Here at Brentwood, an experienced team of analysts examine the
financials of life insurance companies in order to provide the clearest picture
of an annuity provider’s claims paying abilities. Furthermore, our
confidence in respect to credit research allows us to act as co-fiduciary
during the process of purchasing annuities.
In taking these steps, our credit research satisfies the
requirements laid out in the Department of Labor's bulletin 95-1. To read
the bulletin directly, please follow this link:
http://www.dol.gov/dol/allcfr/Title_29/Part_2509/29CFR2509.95-1.htm
Take special notice of the lines that communicate:
"that plan fiduciaries [are required to]
conduct an objective, thorough and analytical search for the purpose of
identifying and selecting providers from which to purchase annuities. In
conducting such a search, a fiduciary must evaluate a number of factors
relating to a potential annuity provider's claims paying ability and
creditworthiness. Reliance solely on ratings provided by insurance rating
services would not be sufficient to meet this requirement."
"Unless they possess the necessary
expertise to evaluate such factors [listed in the bulletin], fiduciaries would
need to obtain the advice of a qualified, independent expert.”
Also note that this section ends with the following statement:
"[Fiduciaries in reversion situations]
will need to obtain and follow independent expert advice calculated to identify
those insurers with the highest claims-paying ability willing to write the
business."
Our credit research is another way we are able to provide Plan
Sponsors with the highest level of service and excellence. Please feel
free to contact a Brentwood representative for samples of our credit
research. Return to Top
Bid Matrix:
The Bid Matrix is a research tool that easily communicates the key financial
differences between insurance companies and the price they have quoted on a
group annuity. This tool allows for Plan Sponsors to look at price
juxtaposed to financial information when receiving a recommendation from our
portfolio manager. Return to Top
Credit Reports:
Credit Reports are written for each of the companies Brentwood places
annuities with. These reports include all essential information to
determine an insurance company's long term claims paying ability.
Brentwood Credit Reports therefore allow Plan Sponsors to choose the safest
annuity provider available. Return to Top
What's News with Insurance Companies:
These documents are written by Brentwood analysts to provide an up-to-date
glimpse of the major current events of an insurance company. In these
documents one will find updates on an insurance company's financials, business
profile, liquidity, off balance sheet risks, investments, and reinsurance.
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Brentwood Aggregate Risk Analysis
(BARA):
The Brentwood Aggregate Risk Analysis (BARA) tool is used by our credit
research department to provide a rating system in respect to the risk involved
in choosing a specific annuity provider. The BARA displays the
fundamental factors that contribute to an insurance company’s ability to pay
the claims of a group annuity contract, therefore offering an assessment of the
risk associated with purchasing a certain annuity. This spreadsheet looks at
the entire universe of providers that Brentwood works with.
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