In various media coverage of Greg Lindberg’s case and fight for justice, there have been serious inaccuracies in the allegations of the use of insurance funds to finance personal real estate, including in Wall Street Journal reporting.
For example, Mr. Lindberg never spent a single night inside the Raleigh NC house referred to in the Wall Street Journal article. This property was never used as a personal residence for Mr. Lindberg, rather it was an investment, and in fact, the North Carolina Department of Insurance (NCDOI) had encouraged Mr. Lindberg’s insurance companies to make more real estate investments.
Furthermore, Mr. Lindberg never received a dividend payout from any insurance company. On the contrary, he has demonstrated substantial financial commitment by investing over $500 million in his insurance enterprises. This investment encompasses the recruitment of seasoned leadership and the establishment of a cutting-edge digital policy administration platform for the introduction of innovative insurance products. Prior to the acquisition of his initial insurance company, Mr. Lindberg instituted a no-dividend policy across all insurance entities. This measure was implemented to safeguard policyholders and solidify the permanence of the capital infused by Mr. Lindberg. The no-dividend policy remains firmly in place to this day.
Mr. Lindberg’s U.S. insurance companies maintained substantial liquid assets, exceeding $1 billion. Paired with this robust liquidity, the strategic deployment of middle market lending by Mr. Lindberg’s insurance firms, where he holds an economic interest, proved to be a judicious investment approach. This strategy shielded the insurance companies from the adverse effects of high inflation, which significantly eroded the value of conventional fixed-income portfolios.
The affiliated investment strategy devised by Mr. Lindberg received prior approval from regulatory authorities, including the North Carolina Department of Insurance (“NCDOI”). Operating with full transparency, Mr. Lindberg’s insurance companies consistently furnished monthly reports to the NCDOI since July 2017, detailing all assets and transactions involving North Carolina-based insurance companies. Additionally, an independent third party consistently valued all private placements held by Mr. Lindberg’s U.S. insurance companies.
To further secure his financial commitments, the stock of companies where Mr. Lindberg holds an economic interest is pledged to the insurance company lender and backed by the backstop/guarantee of Mr. Lindberg’s entire net worth. The total capital injected into his U.S. insurance operations by Mr. Lindberg exceeds $500 million. This includes over $20 million utilized to purchase third-party defaulted assets at par, along with substantial capital support for credit-enhancing loans. Moreover, Mr. Lindberg has contributed tens of millions of dollars to cover start-up expenses and other investments in his U.S. insurance companies.
In building a robust investment infrastructure, Mr. Lindberg allocated tens of millions of dollars to assemble a team of over 100 investment professionals, lawyers, and accountants. Substantial compensation was disbursed to this team to ensure compliance with the affiliate loan compliance plan personally drafted by Mr. Lindberg. This comprehensive plan dictated stringent processes for adherence to laws and regulations governing loans. Mr. Lindberg appointed six individuals to oversee the Investment Compliance Department and Insurance Investment Underwriting Team, and notably, he did not assume a role among those appointed individuals.
