Summary
Citizens Financial Group, Inc. (CFG) has issued this 8-K filing to address media reports concerning customer complaints related to Colorado Bankers Life Insurance (CBL). CBL is currently undergoing rehabilitation in North Carolina due to criminal fraud charges against its controlling shareholder, impacting customers who purchased CBL fixed annuities. CFG acknowledges that it offered these products, underwritten by CBL, between November 2017 and October 2018. The company states it conducted appropriate due diligence, considering CBL's investment-grade rating from AM Best and a favorable rating from ALIRT Insurance Research at the time.
Key Highlights
- 1Citizens Financial Group (CFG) is responding to media reports regarding customer complaints associated with Colorado Bankers Life Insurance (CBL).
- 2CBL is currently in rehabilitation in North Carolina due to large-scale criminal fraud charges against its controlling shareholder.
- 3CFG sold CBL fixed annuity products underwritten by CBL from November 2017 to October 2018.
- 4At the time of sale, CFG conducted due diligence and cited CBL's investment-grade rating from AM Best and a favorable rating from ALIRT Insurance Research as justification.
- 5CFG halted sales of CBL annuities in October 2018 upon becoming aware of an investigation into the controlling shareholder.
- 6CFG has been offering liquidity programs to customers experiencing hardship due to inability to access CBL annuity funds.
- 7Citizens Financial Group does not consider this matter to present material financial exposure to the Company.
Frequently Asked Questions
Colorado Bankers Life Insurance (CBL) is in rehabilitation in North Carolina due to criminal fraud charges against its controlling shareholder. This has impacted customers who purchased CBL fixed annuity products, preventing them from accessing their funds.
From November 2017 to October 2018, CFG offered fixed annuity products underwritten by CBL to its customers. CFG states it performed due diligence at the time, relying on CBL's investment-grade ratings from AM Best and favorable research from ALIRT.
CFG halted sales of CBL fixed annuities in October 2018 after becoming aware of an investigation into CBL's controlling shareholder.
No, Citizens Financial Group stated in the filing that it does not deem this matter to present material financial exposure to the Company.