FPCM | First Principles Capital Management, LLC : Insurance Strategies

Banks and financial institutions are amongst the largest consumers of fixed income assets, and acquire these assets in a variety of forms ranging from individual securities to structured investments. Many financial institutions have significant positions in BOLI (Business Owned Life Insurance), a highly structured transaction involving insurance, asset management, and derivatives. Consistent with our holistic approach to client relationships, our ability to offer insurance advisory services to financial institutions is a logical extension of both our asset management and structured finance activities.

FPCM's insurance strategies team has expertise in every aspect of policy structure, execution, and administration. Unlike traditional BOLI brokers, FPCM sits beside our clients at the negotiating table and advocates on their behalf in discussions with insurance carriers, stable-value providers, and asset managers.

FPCM's compensation is typically not derived from product. Therefore, FPCM's interests are not aligned with any carrier or provider. Experience plus strong relationships with carriers, stable-value providers, and managers helps FPCM pursue best execution for its clients.

FPCM provides independent BOLI placement services. With the passage of "COLI Best Practices" legislation, many banks have started to consider adding to their BOLI portfolios. FPCM manages the entire BOLI transaction process, from pre-purchase analysis and RFP through policy execution, post-purchase analysis and administration. Our Process is broken into 3 phases:
FPCM provides our clients with a full disclosure service contract.

FPCM's pre-purchase analysis focuses on obtaining best execution for our client
FPCM warrants to its clients that the firm will receive no compensation in any form from any vendor associated with the transaction
FPCM warrants that it will disclose any and all forms of compensation that parties to the transaction share with other vendors
All FPCM fees are payable outside the policy
FPCM services may be terminated for failure to perform

FPCM fees are divided into two categories:
As advisor and administrator, FPCM is compensated directly by the client, not by product providers. This ensures that our interests are always aligned with those of the client. Moreover, FPCM often enters into agreements whereby it is awarded an incentive payment linked to tangible cost savings generated for a client.