Beechwood Bermuda Launches Two Innovative Investment Plans for Non-US Investors

Fast-Growing Firm Offers Guarantee Rate Plan and Guaranteed Investment Plan

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Aug 04, 2014, 05:00 ET

NEW YORK, Aug. 4, 2014 /PRNewswire/ -- Beechwood Bermuda today announced that it was beginning sales of two new fixed and variable investment plans with guaranteed returns significantly higher than those offered by other firms. Beechwood Bermuda, an affiliate of reinsurer Beechwood Re, which has closed over $1B in transactions this year, will initially offer its Accumulator Plus and Escalator Plus plans in the Americas (ex-U.S.). It has plans to expand distribution to the Middle East, Europe and parts of Asia early next year.

Beechwood Logo (PRNewsFoto/Beechwood Re, Ltd.) (PRNewsFoto/Beechwood Re, Ltd.)

Beechwood's Accumulator Plus plan is a guaranteed rate plan with three and five year terms that offers guaranteed rates up to 2.75% for 3 years and 3.50% for 5 years. It includes a wealth transfer benefit and is structured within a Bermuda Trust structure whose income is not subject to Bermuda tax.

The Escalator Plus plan is a guaranteed investment plan that provides investors an opportunity to invest in a wide variety of equity and bonds funds from world-class investment advisors, while enjoying a principal protection guarantee of 95%, 100%, or 115% depending on whether a three, five, or ten year plan is selected. In addition, the Escalator Plus offers a unique step-up benefit to automatically lock in any increases to the guarantee every month as the investor's selected funds appreciate. The plan also uses a Bermuda Trust structure and offers a wealth transfer benefit. The plan's guarantee will be supported by Beechwood's contract with an A-rated global bank with over $1.6 trillion in client assets.

When asked about the relative attractiveness of Beechwood's guarantees, Scott Taylor, President of Beechwood, responded "As a relatively new company, Beechwood has invested in building its reputation for distinctive solutions and is not burdened with the expenses that many of its competitors face from older technology and a confusing array of outdated products. Beechwood has instead focused on developing a small set of attractive products that can deliver attractive investment results with superior risk management." David Lessing, Executive Vice President and Head of Global Product Development and Distribution, added, "We are pleased to offer very attractive terms, backed by the security of both Bermuda's segregated trust structure and our relationship with the A-rated global bank partner."

The two new plans will be offered through banks to mid-to-high net worth non-resident individuals in the Americas starting in the fourth quarter, with planned expansion to the Middle East through Beechwood's regional presence in Dubai shortly thereafter.

About Beechwood Re, Ltd and Beechwood Bermuda International Ltd.
The Beechwood family of companies includes Beechwood Re, a reinsurer domiciled in Grand Cayman and regulated by the Cayman Islands Monetary Authority (CIMA), and Beechwood Bermuda International Ltd., a licensed long-term insurer located in Hamilton, Bermuda and regulated by the Bermuda Monetary Authority (BMA). The companies were formed with the belief that there is a shortage in attractive capacity for the life markets, driven by a need for flexibility and creativity in underwriting the life and annuity reinsurance market associated with asset risk. The Beechwood companies provide life and annuity reinsurance to primary insurance companies in the United States and Internationally. Beechwood seeks to provide flexibility for companies to manage their balance sheets and risk profiles through a variety of solutions. Target markets include reinsuring in-force blocks and ongoing quota-shares of fixed and indexed annuities, in addition to in-force, closed blocks of long-term care and long-term disability policies for primary writers.
More information is available by contacting Susan Sweetin, Media Relations at [email protected] or (646) 356-1611.