Citizens Financial sees no financial exposure from CBL matter

In a regulatory filing, Citizens Financial Group responded to media reports regarding customer complaints associated with Colorado Bankers Life Insurance. "CBL is currently in rehabilitation with the Commissioner of Insurance of the State of North Carolina related to large-scale criminal fraud charges against its controlling shareholder, Greg Lindberg, impacting certain customers who purchased CBL fixed annuities. From November 2017 to October 2018, Citizens [along with many other broker dealers and insurance agents] provided fixed annuity products to customers underwritten by CBL. Citizens conducted appropriate diligence on CBL and considered CBL’s investment rating and third-party research in placing CBL’s products on its platform. At the time, CBL’s Financial Strength rating was investment grade equivalent from AM Best. Citizens also noted that ALIRT Insurance Research had issued a 65 rating for CBL, well above the industry average, and an overall "Size and Credit Quality" rating of "A", in their report as of June 2017. In October 2018, Citizens became aware of an investigation into Lindberg and halted sales of CBL’s fixed annuities. Since that time Citizens has been closely monitoring the rehabilitation and liquidation process in North Carolina, with impacted customers currently unable to access their CBL annuity funds. For customers experiencing hardship as a result, Citizens has been offering liquidity programs to help alleviate the impacts while CBL remains in rehabilitation. The significant majority of the annuities sold are below the level of state insurance guarantees. Citizens does not deem this matter to present material financial exposure to the Company."