The anticipated shortfalls resulting from the liquidation of Executive Life of New York (ELNY) are expected to total $920,641,977 on a present value basis - assuming promised state guarantee association payments and enhancements but prior to any possible payments from the ELNY Hardship Fund and/or from structured settlement defendants who negotiated and promised to pay future periodic payments funded with ELNY annuities.
To make matters worse for anticipated ELNY shortfall payees, most of whom are personal injury victims, the entire anticipated $920,641,977 shortfall will be allocated among approximately 15 percent of the ELNY annuitants - an average present value loss of more than $600,000 per annuitant. The remaining ELNY annuitants are not expected to experience any reduction in their payments.
How are the anticipated ELNY shortfall distributed by state based upon the current residence of ELNY shortfall payees?
Daniel Hindert, co-author of "Structured Settlements and Periodic Payment Judgments" (S2P2J), provided a state-specific analysis of total anticipated ELNY shortfall losses as part of his presentation ("How the ELNY Liquidation Impacts Settlement Planners") at the Society of Settlement Planners (SSP) 2012 Annual Meeting. Hindert based his SSP comments on a spreadsheet analysis of Schedule 1.15, now posted on the structured settlement wiki, which was compiled by attorney Edward Stone and his audit team.
According to Stone's spreadsheet analysis, here are the 10 states whose residents will suffer the largest cumulative ELNY losses:
1. California
- $343,098,363 - Annuity present value
- $173,929,372 - Benefits cut
- 51% - Percentage cut
2. New York
- $217,671,882 - Annuity present value
- $94,996,566 - Benefits cut
- 44% - Percentage cut
3. Michigan
- $191,758,830 - Annuity present value
- $91,966,861 - Benefits cut
- 48% - Percentage cut
4. Florida
- $176,892,255 - Annuity present value
- $89,379,868 - Benefits cut
- 51% - Percentage cut
5. New Jersey
- $157,708,648 - Annuity present value
- $69,892,957 - Benefits cut
- 44% - Percentage cut
6. Texas
- $107,503,620 - Annuity present value
- $44,750,691 - Benefits cut
- 42% - Percentage cut
7. Pennsylvania
- $76,571,781 - Annuity present value
- $32,737,043 - Benefits cut
- 43% - Percentage cut
8. Ohio
- $74,494,174 - Annuity present value
- $34,796,854 - Benefits cut
- 47% - Percentage cut
9. Washington
- $53,108,488 - Annuity present value
- $26,861,644 - Benefits cut
- 51% - Percentage cut
10. Georgia
- $44,179,076 - Annuity present value
- $20,097,401 - Benefits cut
- 45% - Percentage cut
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