In the letters, Wyden said he believes PPLI policies are being used “as a tax shelter for the wealthiest Americans”.

He added that the US Senate is “concerned that these insurance vehicles are being used, without a genuine insurance purpose, to invest in hedge funds and other investments while avoiding billions of dollars in federal taxes”.

PPLI is a multi-jurisdictional wealth planning tool available on a private placement basis to wealthy families and high net worth individuals. The product is based on life insurance and annuity policies that allow for tailored and internationally diversified investment strategies.

It is often also known as “private banking insurance” or “insurance wrapper”. PPLI presents a planning structure, just like trusts, companies, foundations and funds that allows an internationally diversified portfolio to be wrapped within the legal structure of a life insurance policy.

Investigation

Wyden’s letters are part of an investigation – which started with his first letter to Lombard International on 15 August 2022, followed by letters to Prudential Financial, Zurich Insurance Group and the ACLI on 21 September 2022.

He is investigating the use of PPLI policies and other loopholes exploited by the wealthiest 1% of Americans to avoid paying their fair share in taxes. Within the 21 September letters, he asked the three companies how they “may be assisting millionaires and billionaires minimise or eliminate taxes on investment income”.

Within the 21 September letter, Wyden asked around 10 questions on PPLI to the companies. The questions surrounded the scope of PPLI business and marketing of the products.

Wyden also asked the aggregate amount of business the carriers are doing in PPLI, how they calculate the value, how PPLI is marketed and the legal justification of claims, as well as other areas.

‘Fully comply’

International Adviser has contacted Prudential Financial, Zurich Insurance Group, Lombard International and the ACLI for a comment.

ACLI spokesperson Whit Corman said to IA: “We are reviewing Senator Wyden’s letter now. The fundamental purpose of life insurance is to protect families financially in the worst of times. Today, consumers have a choice of policies to meet their needs with cash-value life insurance being a key component to American families’ long-term financial security, along with home ownership and retirement savings.”

A spokesperson for Lombard International Group said the group and its member companies “fully comply with all applicable legal, regulatory and fiscal requirements in the jurisdictions where they conduct business”.

In August 2022, life assurance provider Lombard International Group agreed to sell its US and Bermuda business to alternative fixed income manager BroadRiver Asset Management and its affiliated entities.

Prudential Financial and Zurich Insurance Group did not reply in time for publication.

DoJ investigation

Wyden’s investigation follows a recent inquiry by the US department of justice about the involvement of PPLI policies in various offshore tax evasion schemes.

In May 2021, Swiss Life pleaded guilty to using PPLI policies and related investment accounts as “insurance wrappers” to help thousands of US taxpayers’ conceal their ownership of assets offshore and evade paying US taxes.

The office, its 17th in Europe, offers a range of solutions to Swiss clients across public and private markets including products across the global real estate and alternatives sectors.

At the same time, the global investment manager has hired Christian Leger as managing director and head of Switzerland.

Leger will lead Nuveen’s expansion across Switzerland, in alignment with its objectives to both grow its existing institutional client base and offering for private wealth clients. Leger joins from Allianz Global Investors, where he was country head for Switzerland and head of European banks.

He is joined by Michele Perone, who was also previously at Allianz Global Investors and will be vice president in the Zurich office.

Unlock wealth market

Romina Smith, head of central Europe for global client group at Nuveen, said: “The opening of our office in Switzerland is a significant step for Nuveen’s European expansion plans, as we focus on bolstering our services to the private wealth and institutional investment industries.

“A local presence is essential to our success here as Switzerland is home to some of the world’s largest private banks and global financial institutions and we see the Zürich office as key to further unlocking the wealth market in Europe.

“We are also extremely lucky to be able to welcome Christian to lead these efforts. Christian brings a wealth of experience, having covered Swiss clients throughout the entirety of his career.

“We believe that with our diverse investment offering and extensive experience investing across both public and private market solutions, Nuveen is uniquely suited to address Swiss clients’ current and future needs. Christian’s knowledge of the local market and industry expertise will be invaluable as we look to build and strengthen our client base.”

Nuveen has $1.3trn (£1.08trn, €1.28trn) in assets under management as of 31 December 2021 and operations in 27 countries.

Zurich Bank has also received a licence to carry out banking and investment services from the European Central Bank, which will complement the advisory offering.

The move comes a year after Zurich acquired the advice network of Deutsche Bank Financial Advisors in Italy.

“Obtaining the banking licence for Zurich Bank represents a fundamental step for Zurich,” said Giovanni Giuliani, chief executive of Zurich in Italy, in a statement International Adviser translated from Italian.

“We want to create a fluid and multi-channel distribution model, able to offer a synergic range of investment, insurance, banking and financial services leveraging the expertise of a strong network focused on the Italian financial advisory market.

“The creation of this new venture confirms Zurich’s willingness to innovate and our commitment to protect our clients by creating a culture within the financial and insurance space that safeguards our customers.”

Zurich Bank will become operative following the finetuning of the Deutsche Bank acquisition, which is expected to take place after the summer, and after all customary approvals.

At one minute past midnight, he took on what is known as the world’s hardest triathlon – a 290-mile run, row and cycle challenge.

He started with an 83-mile run from London’ Marble Arch headed for Dover, where he jumped into a boat and rowed 21 miles to France. From Calais, it is a 186-mile cycle to Paris where he expects to reach the Arc de Triomphe around 3pm on Saturday 25 June.

It would make him the 47^th person to complete the Arch to Arc challenge and the first with Parkinson’s.

Before setting off, Shaughnessy said: “I needed to find something bigger and better this year, and someone suggested Arch to Arc. I partially do it to keep myself fit and exercising makes a real difference.

“But partially I want to raise awareness and funds for Parkinson’s, particularly awareness because a lot of people assume being diagnosed is the end of your life.”

“In my experience – although there are a lot of things that aren’t good about Parkinson’s – I’ve been very lucky. I’ve had seven-and-a-half years of meeting inspirational people and learning a lot about myself.”

Shaughnessy added: “That’s the whole message. Just because you have Parkinson’s it doesn’t stop you living your life and getting on with things.”

Finding a cure

Shaughnessy was diagnosed in 2015 when he was working at Zurich. He stepped down as chief executive for Zurich Emea in October 2018, having joined the insurer as chief executive of its UK life arm in 2012.

He remains chair of Z Zurich Foundation, its Swiss-based charitable foundation which seeks to tackle climate change, improve mental wellbeing and enable social equity.

He is also chair of Parkinson’s UK and England Athletics and is taking on the Arch to Arc challenge to raise awareness and funds for Parkinson’s UK, so research can be carried out and a cure can be found.

Zurich has pledged to match the first £25,000 ($31,340, €29,300) raised. Ahead of setting off, he had raised £20,000.

What is Parkinson’s

Parkinson’s is now the fastest growing neurological condition in the world, with 145,000 people in the UK living with the disease. Every hour, two more people in the UK are diagnosed. There is currently no cure.

Parkinson’s is what happens when the brain cells that make dopamine start to die. It is a progressive condition. There are more than 40 symptoms, from tremor and pain to insomnia and anxiety. Some are treatable, but the drugs can have serious side effects.

Anyone wishing to support Gary’s incredible challenge, can donate via this link: https://www.garyschallenges.com/donate

Under its new owners, the business will operate independently under a different brand, while Zurich will no longer conduct business operations in Russia.

The transaction will allow the company to retain a team to continue serving the Russian market.

Zurich Russia is a property and casualty insurer with about 0.3% of the Russian non-life insurance market.

Its main business has been supporting the activities in Russia of Zurich’s international customers. In 2021, Zurich Russia had gross written premiums of approximately $34m (£27m, €32m), including $3m from domestic customers.

The deal is subject to approval of the relevant regulatory authorities.

Logo issue

The sale comes several months after Zurich removed its “Z” logo from all social media platforms to support Ukraine in its fight against Russia’s invasion.

The firm removed the logo – a white Z on a blue background – as it did not want its meaning to be misconstrued.

The letter Z has been used as a mark on Russian military vehicles in Ukraine to symbolise support for the war.