J.G. Wentworth
Encyclopedia
J.G. Wentworth is a financial services
firm that specializes in purchasing structured settlement
s and annuities
from individuals. The company is owned by private equity firm JLL Partners
.
In the United States the company is best known for its advertising
commercials featuring "Mr. Wentworth", but more recent commercials include a Wagnerian Opera singer. The tagline featured in the commercials is "It's your money; use it when you need it!"
s from claimants who could not afford to wait 12 to 18 months for their settlements.
By the late 1990s, JGW began to focus on the structured settlement and annuity business. JGW has issued 22 securitizations, which are backed by both structured settlements and annuities receivables totaling over US $2.3 billion
. Since 1992 JGW has purchased US $4 billion in future payment obligations from consumers. As of November 2010, the company has completed a US $212 million securitization
consisting of two classes of notes: Class A notes rated Aaa and Class B notes rated A2 by Moody's
Investors Service, in addition to a Residual Class of US $14.8 million retained by the Company.
Prior to 1999 there was no state regulation for structured settlements in the state of New York. Elliot Spitzer entered into a contract with J.G. Wentworth to help protect New Yorkers from selling their settlements at exorbitant rates. The agreement stipulated that J.G. Wentworth could receive a rate of no more than 25 percent of the annual discount rate
of annuities it had purchased from a citizen of the state of New York. At the time, a JGW executive told the New York Times that the firm sought the agreement because of the rate at which its business had grown in recent years.
commercials featuring "Mr. Wentworth", but more recent commercials, it also includes a Wagnerian Opera singer. The tagline featured in the commercials is "It's my money and I need it now!", and "It's your money, use it when you need it!"
JGW has won several awards both domestically and internationally for their television advertising, including a silver Davey award. The commercials feature a singing "Opera" star who recites the need for getting cash from a settlement. The "Wagnerian Opera" commercial won two International Summit Awards
for Best Humor and Best TV between US $75k and US $100k.
and two of its subsidiaries, J.G. Wentworth LLC and J.G. Wentworth Inc., entered Chapter 11 bankruptcy protection after the company "encountered liquidity problems amid a tightening credit market". J.G. Wentworth laid off 120 of its 200 employees and closed its office in Las Vegas.
Less than six months later, parent company JLL Partners of New York invested $100 million in the firm . Subsequently, J.G. Wentworth began hiring new staff at corporate headquarters located in Bryn Mawr, Pennsylvania. Since the crisis, JGW has since increased staff to 178 employees.
Financial services
Financial services refer to services provided by the finance industry. The finance industry encompasses a broad range of organizations that deal with the management of money. Among these organizations are credit unions, banks, credit card companies, insurance companies, consumer finance companies,...
firm that specializes in purchasing structured settlement
Structured settlement
A structured settlement is a financial or insurance arrangement, defined by Internal Revenue Code as periodic payments; a claimant accepts to resolve a personal injury tort claim or to compromise a statutory periodic payment obligation. Structured settlements were first utilized in Canada after a...
s and annuities
Annuity (US financial products)
In the United States an annuity contract is created when an insured party, usually an individual, pays a life insurance company a single premium that will later be distributed back to the insured party over time...
from individuals. The company is owned by private equity firm JLL Partners
JLL Partners
JLL Partners is an American private equity firm focused on leveraged buyout transactions and leveraged recapitalizations of middle-market companies. The firm is headquartered in New York City and was founded in 1987...
.
In the United States the company is best known for its advertising
Advertising
Advertising is a form of communication used to persuade an audience to take some action with respect to products, ideas, or services. Most commonly, the desired result is to drive consumer behavior with respect to a commercial offering, although political and ideological advertising is also common...
commercials featuring "Mr. Wentworth", but more recent commercials include a Wagnerian Opera singer. The tagline featured in the commercials is "It's your money; use it when you need it!"
History
Founded in 1991, J.G. Wentworth started as a merchant bank handling transactions in the healthcare industry. In 1992 the company began to purchase New Jersey's auto insurance deferralDeferral
Deferred, in accrual accounting, is any account where the asset or liability is not realized until a future date , e.g. annuities, charges, taxes, income, etc. The deferred item may be carried, dependent on type of deferral, as either an asset or liability...
s from claimants who could not afford to wait 12 to 18 months for their settlements.
By the late 1990s, JGW began to focus on the structured settlement and annuity business. JGW has issued 22 securitizations, which are backed by both structured settlements and annuities receivables totaling over US $2.3 billion
1000000000 (number)
1,000,000,000 is the natural number following 999,999,999 and preceding 1,000,000,001.In scientific notation, it is written as 109....
. Since 1992 JGW has purchased US $4 billion in future payment obligations from consumers. As of November 2010, the company has completed a US $212 million securitization
Securitization
Securitization is the financial practice of pooling various types of contractual debt such as residential mortgages, commercial mortgages, auto loans or credit card debt obligations and selling said consolidated debt as bonds, pass-through securities, or Collateralized mortgage obligation , to...
consisting of two classes of notes: Class A notes rated Aaa and Class B notes rated A2 by Moody's
Moody's
Moody's Corporation is the holding company for Moody's Analytics and Moody's Investors Service, a credit rating agency which performs international financial research and analysis on commercial and government entities. The company also ranks the credit-worthiness of borrowers using a standardized...
Investors Service, in addition to a Residual Class of US $14.8 million retained by the Company.
Prior to 1999 there was no state regulation for structured settlements in the state of New York. Elliot Spitzer entered into a contract with J.G. Wentworth to help protect New Yorkers from selling their settlements at exorbitant rates. The agreement stipulated that J.G. Wentworth could receive a rate of no more than 25 percent of the annual discount rate
Discount rate
The discount rate can mean*an interest rate a central bank charges depository institutions that borrow reserves from it, for example for the use of the Federal Reserve's discount window....
of annuities it had purchased from a citizen of the state of New York. At the time, a JGW executive told the New York Times that the firm sought the agreement because of the rate at which its business had grown in recent years.
Commercials and Awards
In the United States the company is best known for its advertisingAdvertising
Advertising is a form of communication used to persuade an audience to take some action with respect to products, ideas, or services. Most commonly, the desired result is to drive consumer behavior with respect to a commercial offering, although political and ideological advertising is also common...
commercials featuring "Mr. Wentworth", but more recent commercials, it also includes a Wagnerian Opera singer. The tagline featured in the commercials is "It's my money and I need it now!", and "It's your money, use it when you need it!"
JGW has won several awards both domestically and internationally for their television advertising, including a silver Davey award. The commercials feature a singing "Opera" star who recites the need for getting cash from a settlement. The "Wagnerian Opera" commercial won two International Summit Awards
Summit Awards
The Summit International Awards grants awards for excellence in creativity and effectiveness of advertising and communication content.Founded in 1994, the organization has served the segment of the industry consisting primarily of advertising and other communication companies and individuals...
for Best Humor and Best TV between US $75k and US $100k.
Reorganization
During the financial crisis of 2009, the firm formally known as JGW Holdco LLCLimited liability company
A limited liability company is a flexible form of enterprise that blends elements of partnership and corporate structures. It is a legal form of company that provides limited liability to its owners in the vast majority of United States jurisdictions...
and two of its subsidiaries, J.G. Wentworth LLC and J.G. Wentworth Inc., entered Chapter 11 bankruptcy protection after the company "encountered liquidity problems amid a tightening credit market". J.G. Wentworth laid off 120 of its 200 employees and closed its office in Las Vegas.
Less than six months later, parent company JLL Partners of New York invested $100 million in the firm . Subsequently, J.G. Wentworth began hiring new staff at corporate headquarters located in Bryn Mawr, Pennsylvania. Since the crisis, JGW has since increased staff to 178 employees.