J.G. Wentworth
| JGWlogo.png | |
| Industry | Finance |
|---|---|
| Founded | 1991 |
| Headquarters | Bryn Mawr, Pennsylvania, United States |
Area served | United States |
Key people | David Miller (CEO), Randi Sellari (President) |
| Services | Buys structured settlement payments · Fixed Annuities · Lottery Winnings · Lawsuit Advance |
| Website | J.G. Wentworth |
J.G. Wentworth is a financial services firm that specializes in purchasing structured settlements and annuities from individuals.[1] The company is owned by private equity firm JLL Partners.[2]
In the United States the company is best known for its advertising commercials featuring "Mr. Wentworth",[3] but more recent commercials include a Wagnerian Opera singer.[4][5] 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[6] handling transactions in the healthcare industry.[7] In 1992 the company began to purchase New Jersey's auto insurance deferrals from claimants who could not afford to wait 12 to 18 months for their settlements.[8]
By the late 1990s, JGW began to focus on the structured settlement and annuity business.[9] JGW has issued 22 securitizations, which are backed by both structured settlements and annuities receivables totaling over US $2.3 billion.[10] Since 1992 JGW has purchased US $4 billion in future payment obligations from consumers. [11] [12] 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, [13] in addition to a Residual Class of US $14.8 million retained by the Company.[14]
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.[15] 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.[16]
Commercials and Awards
In the United States the company is best known for its advertising commercials featuring "Mr. Wentworth", but more recent commercials, it also includes a Wagnerian Opera singer.[17] 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[18], including a silver Davey award.[19] 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.[20][21]
Reorganization
During the financial crisis of 2009, the firm formally known as JGW Holdco LLC 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".[citation needed] J.G. Wentworth laid off 120 of its 200 employees and closed its office in Las Vegas.[22]
Less than six months later, parent company JLL Partners of New York invested $100 million in the firm [23]. 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.[24]
References
- ^ http://in.reuters.com/article/privateEquity/idINN1944239020090519
- ^ Rosenbush, Steve. "Wentworth's pocket of gold." BusinessWeek, July 7, 2006
- ^ http://www.hanfordsentinel.com/news/opinion/columnists/article_ee8e305c-4c4f-11e0-967d-001cc4c002e0.html
- ^ http://www.allbusiness.com/banking-finance/financial-markets-investing-securities/12330169-1.html
- ^ http://unioneagle.com/2011/06/its-hard-to-shake-a-good-jingle/
- ^ http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=968960
- ^ http://ipo.nasdaq.com/TextSection.asp?cikid=44308&fnid=9536&sec=bd
- ^ http://www.state.nj.us/governor/news/news/552010/approved/20100225b.html
- ^ http://structured-settlement.top-companies.info/
- ^ http://www.cnbc.com/id/40025991
- ^ http://www.bradenton.com/2010/05/04/2257213/dan-hayes-joins-jg-wentworth-as.html
- ^ http://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_view&newsId=20100813005446&newsLang=en
- ^ http://www.dublicore.org/j-g-wentworth-completes-212-million-securitization-of-asset-backed-notes/
- ^ http://www.forbes.com/feeds/businesswire/2010/11/05/businesswire148110818.html
- ^ http://www.ag.ny.gov/media_center/1999/jul/jul29b_99.html
- ^ http://www.nytimes.com/1999/07/30/nyregion/accord-is-reached-on-trades-of-cash-for-lawsuit-proceeds.html?pagewanted=1
- ^ http://www.responsemagazine.com/response-magazine/jg-wentworths-direct-response-aria-1237?page_id=4
- ^ http://www.allbusiness.com/banking-finance/financial-markets-investing-securities/12330169-1.html
- ^ http://eon.businesswire.com/portal/site/eon/permalink/?ndmViewId=news_view&newsId=20100316005604&newsLang=en
- ^ http://www.highbeam.com/doc/1G1-199662510.html
- ^ http://www.shootonline.com/go/index.php?name=Release&op=view&id=rs-web2-922552-1297976139-2
- ^ http://www.bizjournals.com/philadelphia/stories/2009/11/30/daily33.html
- ^ http://philadelphia.bizjournals.com/philadelphia/stories/2009/11/30/daily33.html?f=et72&jst=e_cn_lk&iana=e_du_pub&s=du&ed=2009-12-03
- ^ http://www.jgwentworth.com/blog/post/2010/10/19/One-Hundred-Seventy-Eight-and-Counting.aspx
