Diversify your business with bank-owned life insurance

Image: Diversify your business with bank-owned life insurance

Ascensus has partnered with financial advisors to bring retirement solutions to millions of people for more than 40 years. Our broad range of retirement solutions and industry-leading expertise give you the freedom to build a plan you can offer to clients with confidence.

But our expertise isn’t confined to the retirement space with your plan sponsor clients.

By joining forces with Newport, we unlocked an expanded portfolio of products and solutions, providing even more ways for you to build your practice with a diverse set of clients—including financial institutions—to grow long-term, sustainable revenue.

A great example is bank-owned life insurance (BOLI).

The opportunity

With $226.5 billion of asset value on bank balance sheets,1 banks of all sizes use BOLI as an informal offset to employee benefit expenses. A properly structured BOLI program can be financially efficient, fit within the scope of sound banking practices, and be superior to available funding alternatives.

  • In 2022, 512 banks purchased nearly $6 billion of BOLI premiums.2
  • It’s a long-dated asset, with most policies remaining in force for many decades.
  • As a life insurance product, BOLI offers significant tax advantages compared with most assets a bank can own, and that frequently results in higher returns for BOLI. Coupled with excellent credit characteristics, this makes BOLI an attractive asset to most banks.

A partner you can trust

22 of the top 30 owners of BOLI trust Newport for administration services.1

Newport is a pioneer in the BOLI space, with more than three decades of commitment to the market focused on product development, marketing, design, implementation, and administration. In fact, through Newport, we’re the nation's largest administrator of BOLI—with 22 of the top 30 owners of BOLI trusting us for administration services.1

We can help you and your bank clients in all facets of product, tax, and regulatory complexities of a well-designed BOLI portfolio.

  • With a license to sell life insurance, you can market BOLI to bank clients. We can help you navigate the process with insurance carriers.
  • Take advantage of our complete outsourcing solution. This can allow you to remain focused on your primary business. From the initial purchase of BOLI through the ultimate maturity of the asset, we will collaborate closely with you and your clients to help ensure their programs meet their unique needs.
  • Our team of 70+ experts provides a full range of services throughout the BOLI lifecycle, including:
    • product selection
    • pre-purchase due diligence
    • implementation
    • monthly reporting
    • regulatory compliance
    • death claim sweeps and processing

  • Thanks to the current interest rate environment and proposed regulatory changes, now is the perfect time to engage banks to review potential optimization strategies for their in-force BOLI portfolios. It’s a significant opportunity for you to grow business.

Get started today with bank-owned life insurance.
We’re here to help you get there. To learn more, please contact Scott Bethune, senior vice president, BOLI consulting: scott.bethune@newportgroup.com

1BOLItrackerTM data as of March 31, 2023.
2BOLItrackerTM data for the year ending December 31, 2022.

Securities are offered through Ascensus Broker Dealer Services, LLC., member FINRA/SIPC. Securities in California are offered under the d/b/a Ascensus Corporate Insurance Solutions. Other insurance products may be offered by Newport Group, Inc., an Ascensus Company.