The Wall Street Journal (WSJ) article contains numerous inaccuracies and errors in fact. As
- Lindberg did not “divert”
$2 billioninto his alleged private empire. As is the case with insurance companies, money was invested. Diverted misleads the public and implies wrongdoing, and there has been no wrongdoing found. As your reporters were told in writing: All assets were invested and were invested in middle market loans as originally agreed upon with the NCDOI in 2014. Mr. Lindbergand the Eli team specifically proposed to the NCDOI in 2014 to invest 40% of SNIC’s assets in sub-investment grade middle market loans to non-insurance companies where Mr. Lindbergmaintains an economic interest and NCDOI explicitly approved this proposal.
- With regard to the European insurance companies referenced in the article, to be clear, no policyholders of
Mr. Lindberg’sEuropean insurance companies are exposed to affiliated investments.
- There are numerous inaccuracies with respect to the use of the insurance funds to finance personal assets. For example,
Mr. Lindbergleased an airplane in 2014 — he did not purchase it— before he acquired his first insurance company, and the plane has been used primarily for business purposes. The second airplane, also used primarily for business, was purchased in 2018 and was financed by a third-party lender and no insurance company funds were used in the purchase. No insurance company money was used to purchase Mr. Lindberg’sinvestments in the Idahoand Key Westproperties, or his boat. And, Mr. Lindberghas never spent a night inside the Morning Mountainhouse, the Idahoproperty, or the Key West property. These properties are held as investments and are not personal residences. All of this was communicated to the WSJ in writing.
- No money was ever invested in “insolvent” affiliates. A big 4 accounting firm valued all of
Mr. Lindberg’smaterial affiliated assets and reported pre-tax net worth of $1.7 billionas of 12-31-17. Another well-known third-party valuation firm reached a similar result in January of 2018.
- There was no attempt to use the SPV’s to “disguise the flow of money.”
Mr. Lindbergand his team were transparent with regulators on the Special Purpose Vehicle (“SPV”) structure, as referenced in the article and the SPVs were implemented with the full approval of the NCDOI. Mr. Lindbergpersonally invested tens of millions of dollars in capital to enhance the credit quality of these loans.
Three years ago, a senior NCDOI official reported to the NAIC that “
Since that time, the financial position of
(c) There has never been a payment default on a loan from his insurance companies to a company where Lindberg has a significant economic interest;
Also, since 2016, there have been several additional third party valuations performed which show the value of