Stable Value Wraps

The overwhelming majority of stable value contracts today put BOLI/COLI subadvisors and policyowners at significant risk of long-term underperformance.

These SV contracts provide low returns for the risk taken, impose arbitrary constraints on the subadvisors, do not allow policyowners to manage the credit or duration risks of their portfolios, and come with other poor terms and high fees. 


Atlas SV Partners designs, provides, and administers stable value contracts that provide policyowners with the ability to manage the credit and duration risks of their portfolios, earn higher returns, and benefit from better features (e.g. no change of tax law, long-term crawl-out, or surrender-all provisions). Our team has developed and administered several SV businesses over the past 20 years that together have generated $50 billion in AUM.

Underlying Portfolios

We offer a diverse list of fixed income strategies, both passively and actively-managed. The combination of features we provide results in 100-300 bpts pa of additional after-tax return.

  • Funds are added based upon requests from life insurance companies with the intention to offer at least 2 best-in-class subadvisors for each investment strategy requested.

  • Through the next several business cycles, policyowners can freely select and reallocate to the strategies that best fit their return and capital needs while managing the duration and credit exposure of their BOLI portfolios.

  • Prudent investment management guidelines have been developed that eliminate arbitrary constraints (liquidity, credit, duration and asset class concentration), imposed solely to benefit the SV wrap providers, and that allow subadvisors to maximize return on capital.

  • These investment options are easily added to any life insurance companies’ policy menu and then can be reallocated to by the policyowner. No surrender or exchange is required.

Credit Protection from Goldman Sachs & Co

 

Atlas SV Partners has acquired a credit hedge from Goldman Sachs & Co.  If Atlas SV Partners does not meet a Stable Value Surrender Payment obligation, Goldman Sachs & Co will make the required payment. 

Summary of Key Terms

  • Stable Value Surrenders processed and paid within 60 days

  • Market Value Surrenders paid immediately with no breakage fees

  • Credit backing of Goldman Sachs

  • Complete range of bank-eligible investment strategies and institutional sub-advisors offered with no arbitrary guideline constraints (e.g. credit concentration limits or liquidity requirements)

  • Ability to freely reallocate between investment strategies for the life of contract

  • Fees competitive with existing SV contracts (eg. for short and intermediate Funds, 9 basis points on amounts greater than $100 million)

  • SV Cap at 15% with the intent to increase Cap to 25% over the first 10 years

  • Maturity date when the last insured under the transaction passes away

sv.png