FlexGIA™ is a form of floating rate medium term insurance company debt obligation designed to facilitate unique funding and risk mitigation applications, with each payment of interest and repayment of principal fully supported by eligible government obligations.

USD$1 billion
Initiative Infrastructure Series
(which may be increased based on demand)

Funded through issuance of

Interest crediting spreads above annually reset 1 Year Treasury Index benefit from IAC Insurer's risk mitigation, underwriting and investment activities associated with a wide range of risk transformation, indemnity and investment strategies.

FlexGIA™ Series payment of USD periodic interest and repayment of principal is fully supported by US Treasury and eligible agency obligations.

FlexGIA™ - Uniquely designed for ....

Life Insurers

Domestic | International

Property Casualty Insurers

Domestic | International

Sovereign Wealth Funds

International

Portfolio Funds

Public | Private

 Depository Institutions

Domestic | International

International Banks

Diversified Bank Exposures

Myriad strategies and risk transformations may be funded through FlexGIA™, providing highest credit quality, while benefiting from portfolio diversification of various periodic income strategies.

FlexGIA™ - Patented Design  

Each interest payment and repayment of Principal is backed by eligible government obligations held by government-approved custodians under statutory legislation, designed to assure timely receipt by FlexGIA™ holders. FlexGIA™ are issued by "bankuptcy proof" regulated insurance company issuers. Systemic risk exposures are addressed through the ability of holders to claim directly against custodians. Upon maturity or interest payment date, the structural risk mitigation provisions of the IGF Act enable eligible government obligations to be transferred directly to holders.

The dynamic nature of FlexGIA™ technologies benefit from changes in eligible government yield curve periodically which may shorten or lengthen time to "prepayment". A prepayment event is often beneficial to issuer and holder.

FlexGIA™
Perspectives

FlexGIA™ are designed to optimise an institution or fund's high quality ("AAA"), short duration government securities portfolios, reset annually at a 1 Year Treasury Index, with interest rate resets and prepayment yields of up to BBB+ investment grade rates.

FlexGIA™ is far more ...
Portfolio Valuation Protection, Lower Risk-Based Capital, Increased Regulatory Capital, Volatility Dampening and other features and benefits are described below...
FlexGIA™ is a form of high credit quality, short duration, floating rate debt obligation issued by special purpose insurance companies, each an IAC™ Insurer. Myriad FlexGIA™ Series may be issued creating multiple strategies.

A portfolio of FlexGIA™ may provide diversification in interest crediting rates with an agreed lifetime and annual cap and floor structure, as well as providing diversification in timing of prepayment and its"look back make whole" prepayment premium feature.

As illustrated, IAC™ Insurers may provide a wide range of FlexGIA™ Series designed to address specific balance sheet and income statement issues. 

FlexGIA™ in conjunction with PAR+™ technologies, enable institutional portfolios, depository institutions, insurance companies, and other regulated institutional parties to not only increase risk adjusted return, enhance risk based capital, but to mitigate a wide range of risk exposures potentially impacting financial results.

For institutions wishing to increase service revenue, such as depository institutions and insurance companies, FlexGIA™ and PAR+™ technologies, provide a long term source of service income, which may benefit from immediate revenue recognition on closing, increasing capital and/or surplus.

The following schematic illustrates various types of FlexGIA™ Series facilitating a broad range of funding and risk mitigation benefiting local Communities.

FlexGIA™ Series

FlexGIA™ may be issued under several types of Series.

FlexGIA™Series of differing strategies may give rise to variances in interest crediting rates. A portfolio of FlexGIA™ may provide diversification amoung annual interest income streams potentially resulting in consistently higher annual returns over time, although no assurance can be given. Portfolio effect may also apply to average life. FlexGIA™ Series related to US Community Banks, for example, may be included as a new asset subclass in USD government obligations to add national, regional, type, size and other diversification elements related to banking regulatory debt exposure, with interest and principal fully supported by US Treasury and Agency obligations.

Institutional Series

This type of Series is designed for insurance companies, sovereign wealth funds, other portfolio funds, large depository institutions, public and private retirement funds, and institutional investors.
Such a Series is designed to provide diversified portfolios of US Treasury | Agency backed floating rate medium term debt obligations which benefit from diversified US Community Bank and/or insurance company regulatory debt, as well as participations in other forms of debt obligations issued by a depository institution or insurance company.

AP Series

US Banks and insurance companies which own FlexGIA™ Series may benefit from converting FlexGIA™ into interests in accredited ETF (exchange traded funds) which focus on those strategies. 
Whether directly as an Authorized Participant (“AP”) in an accredited ETF, or through a Qualifying ETF AP, FlexGIA™ may be configured to enhance value and liquidity in supporting bond type ETFs. 
For example, a US Depository Institution owning an interest in a FlexGIA™ Series with a focus on US bank regulatory capital comprised of US banks in a particular region, may wish to convert into ETF interests in a bond ETF for liquidity and an uplift in value. A FlexGIA™ Series which includes future accretion at a lifetime floor and an annual floor which exceeds the “risk free” rate, i.e. 1 Year US Treasury Index, may benefit from an increase in value over par, as such may lead to higher conversion value, although no assurance can be given. A US Depository Institution may wish to hold ETF interests on its books, sell into public markets, and/or develop a program for facilitating their depositors’ purchase of ETFs.  

Participant Series

Participant Series may be acquired by US Depository Institutions which participate through issuance of Subordinated Debt Debentures into the Program. 
Acquisition of multiple FlexGIA™ Series provide diversification beyond directly owning capital instruments of local participant banks.
Multiple Portfolio Series may provide a reduction in net cost of a Subordinated Debt Debenture and a synergistic investment for funds received from sale of a Subordinated Debt Debenture.

Special Situations Series

This Series type includes FlexGIA™ issued as a part of a Series with a focus on providing debt warehouse funding as a part of the Program, risk mitigation activities and other purposes. 

Strategy Series

This Series type includes FlexGIA™ issued with a focus on a specific risk strategy, such as Commercial Real Estate, including Hospitality.

O|Zone™ Series

These Series of FlexGIA™ are designed to support funding and risk mitigation of activities operating under O|Zone™ Initiatives.

Asset Transformation to FlexGIA™

FlexGIA™ enable transformation of a variety of assets held by institutional parties into high quality floating rate debt obligations the interest on and repayment of Principal of which are fully backed by US Treasury | Agency obligations, with no timing or currency risk. This unique debt instrument mitigates market value risk, credit risk, operations risk, systemic risk and re-hypothecation risk exposures. Myriad types of instruments may be acquired by an IAC™ Insurer from banks, insurance companies, and portfolio funds creating  Bespoke Series,  Special Situations Series and other categories of FlexGIA™ Series.

PAR+ - Bespoke Reference Series

Reference Series with bespoke terms may be requested by institutional and governmental participants from applicable IAC™ Insurers on a "reverse enquiry" basis. Interest payments and Principal repayment of these 30 year, floating rate, high quality debt obligations are fully backed by US Treasury | Agency debt obligations, held by government approved custodians under the Investors Guaranty Fund, Ltd. (Policyholder Reserves) Act, 1991. IAC™ Insurers have been rated in the top rating category international rating agencies since 1989.

PAR+™ FlexGIA™ Reference Series may be designed in a bespoke fashion to address intractable risk exposures of one or more PAR+™ Reference Series purchasers,  mitigating specific balance sheet risk exposures through indemnity,  transference of distressed and at-risk assets, pure risk transfer through credit substitution, structural risk mitigation, applying  "portfolio effect", time cycle modulation and other patented technologies developed and in operation for more than three decades by IAC™ Insurers.

Portfolios Diversification

Strategy Transformation - FlexGIA™ enable transformation of myriad asset strategies into high quality floating rate debt obligations, the interest on and repayment of Principal of which are fully backed by US Treasury | Agency obligations, with no timing or currency risk. This unique debt instrument is designed to mitigate market value risk, credit risk, operations risk, systemic risk and re-hypothecation risk exposures.

A portfolio of various Reference Series of FlexGIA™ add portfolio diversification in a new way, focused on cashflows and prepayments, not credit. Each FlexGIA™ Series in a portfolio is designed to create short duration, floating rate, US Treasury | Agency credit quality, with risk-adjusted returns emulating investment grade debt obligations, with risk-based capital similar to US Treasury and Agency debt obligations for depository institutions, insurance companies and other regulated institutional participants.

A portfolio of FlexGIA™ provides diversification of interest crediting rates within agreed lifetime and annual cap and floor structures, as well as providing diversification in timing of prepayment and their respective "look back make whole" prepayment premiums.

Periodic interest rate revenues of Reference Series of FlexGIA™ and prepayments may benefit from portfolio diversification through positions in mutliple FlexGIA™ Reference Series.

Initiative Infrastructure Reference Series

facilitating 
local Community Infrastructure funding as well as Initiative Ecosystems

Initiative Infrastructure Reference Series of FlexGIA™ may be issued by an IAC™ Insurer in a minimum amount of USD$500 million. The size of a Reference Series may be increased from time to time based on demand.

Interest payments and Principal repayment of these 30 year, floating rate, high quality debt obligations are fully backed by US Treasury|Agency debt obligations, held by government approved custodians under the Investors Guaranty Fund, Ltd. (Policyholder Reserves) Act, 1991. IAC™ Insurers' obligations have been rated in the top rating category of international rating agencies for more than 30 years.

Periodic interest crediting rate is reset each year between 1 Year Treasury Index and Annual Cap which float within an agreed interest rate Lifetime Cap and Floor. A prepayment of FlexGIA™ is subject to a "look-back, make-whole" prepayment premium designed to achieve an agreed level of compound return established at issuance.

FlexMuni™ protocol is an advanced municipal finance instrument designed to benefit government borrowers by lowering risk-adjusted interest, linking payments to project funding and tariff revenue, allowing for forbearance accrual during economic distress, and offering long-term maturity matching the useful life of underlying collateral. It also incorporates a reserve fund for managing future repayments.
Key elements include:
1. Tax-Exempt Bonds: Typically issued by government authorities for public infrastructure, especially in Qualified Opportunity Zones. 
2. Risk Mitigation: Utilizes economic cycles, digital technologies, and machine learning to reduce risk exposure and expand local Community funding. 
3. Digital Twin Technology: Facilitates sinking fund management and the efficient allocation of excess project and tariff cashflows 
4. Local Community Indenture Administration: Administration of local Government Authority financing, custody, and fiscal agent services to returned to local Community Banks, increasing their service revenue and supporting local jobs.

FlexGIA™ Series - Issuance

Reverse Enquiry - 

Given the unique nature of FlexGIA™, accredited Bermuda insurance intermediaries facilitate reverse equiry requests from accredited institutional investors, as required under Bermuda regulations. Recognized securities broker dealers may facilitate these transactions for regulatory purposes. 

FlexGIA™ are issued in a format similar to a standard bond which is not "book-entry". It may be held by a government approved custodian or fiscal agent as agreed with the purchaser. Periodic payments are also facilitated through government approved custodians and fiscal agents, in a manner designed to meet international regulatory guidelines for anti-money laundering, anti-terrorism finance, sanctions, etc. Of significance, the structure is designed to mitigate re-hypothecation and other systemic banking system risks.

A purchaser may elect to use an international fiscal agent facility, which enables a FlexGIA™ to be held in USD$1,000 principal units. One or more units may be mapped to a Controllable Electronic Record. A controllable electronic record (CER) is a digital asset that can be controlled, similar to how a person possesses a physical asset. The concept of CERs was introduced in the 2022 amendment to the US Uniform Commercial Code (UCC).

This approach is designed to facilitate transfers of FlexGIA™ CERs to Exchange Traded Funds ("ETF").  Each FlexGIA™ is issued on archival substrates designed to last more than 100 years. They are issued in multiple evidence instances, which are placed in safekeeping in several locations, held by regulated custodians. Each instance of a FlexGIA™ maps to a Digital Twin, which is persisted on redundant DAOs (decentalized autonomous organisations) under Alliance iii.o. Each FlexGIA™ is also registered with a Digital Units Organisation operating under Portfolios, as an international registry, in trust with a trustee regulated by the Cayman Monetary Authority.

Each FlexGIA™ CER unit is a digital asset which maps to a specific FlexGIA™ instance. These CERs may be allocated to an applicable ETF, as described below. 

FlexGIA™ Reference Series Liquidity Transformation

Initiative Infrastructure FlexGIA™ Reference Series

US Treasuries

Interest payments and Principal repayment of this FlexGIA™ Reference Series is fully backed by US Treasury | Agency obligations, obligations guaranteed by United States Government and immediately available funds.

Risk | Funding

IAC™ Insurer(s) issuing FlexGIA™ Reference Series may be a primary funding source of Initiative Infrastructure Ecosystems, and risk mitigtation support related to ecosystem participants.

FlexETF™

Eligible holders of FlexGIA™ Reference Series may transfer qualifying FlexGIA™ CERs to an applicable FlexETF™ or ETF Authorised Participant for immediately available funds or in exchange for FlexETF™ CERs.

FlexGIA™ Holders

FlexGIA™ Holders are institutional participants including banks, insurers, sovereign wealth funds, governments, and various portfolio investors. 
FlexETF™ is designed to transform FlexGIA™ units to publicly traded investors.

FlexGIA™ CERs to

AD&C Principals have developed a new form of Exchange Traded Fund, a FlexETF™.

This special form of ETF is designed to make available to public investors, debt investment interests, which are fully backed by US Treasury | Agency obligations, designed to benefit from the unique nature of additional investment grade interest rate spread, subject to agreed "investment return" based prepayment premiums in the event of early repayment.

FlexGIA™ Reference Series CERs may be transferred to a qualifying Exchange Traded Fund ("ETF") subject to applicable amendments of FlexGIA™ Reference Series designed to optimise capital gains categorisation of increases in value of underlying FlexGIA™ CERs transferred to an applicable FlexETF™. 

Eligible Depository Institutions may acquire Initiative Infrastructure Reference Series in their capacity as an Authorised Participant associated with a FlexETF™ Program developed by AD&C Principals.

Although no assurance can be given, the objective is to enable a broader range of investors to benefit from interests in pooled FlexGIA™, in the form of capital gain optimised exchange - tradeable obligations.

 Controllable Electronic Records ("CER") - FlexGIA™

A FlexGIA™ Reference Series Controllable Electronic Record ("CER") is a new form of United States Uniform Commercial Code "Controllable Electronic Record" ("CER"), which may digitally control a unit of a FlexGIA™ Reference Series.

An Authorised Participant may transfer CER units of a FlexGIA™ Reference Series to a FlexETF™. On transfer, interest payments accrete to maturity or earlier redemption in a manner designed to create accretion within an exchange tradeable fund of FlexGIA™ Reference Series CER units, which is fully backed by US Treasury | Agency obligations.

Authorised Participants

This activity has the potential to increase Depository Institution service fee activities and other forms of revenue expansion, with limited risk exposure. It may also include a means for these institutions to increase liquidity associated with FlexGIA™ Reference Series which are generally designed as "limited liquidity" instruments benefiting from increased interest rate spreads applicable to reduced liquidity.

FlexGIA™ Highlights

Download FlexGIA™ Contract highlights

This document provides a summary of FlexGIA™, one of four standard contract forms used by IAC™ Insurers. The FlexGIA™ Policy Form may only be issued by IAC™ Insurers which are Investors Guaranty Assurance Type life|assurance companies, licensed for a specific FlexGIA™ contract Form. 

This Policy Form is Version 5.0 for USDollar applications. It is specifically designed only for use in USD transactions.  The contract may be issued as a medium-term debt obligation.

Not an offer of securities. For information purposes only. For specific contract terms, reference should be made to applicable Information Memorandum, Supplement, and actual contract documents. 

This document provides an informational summary of FlexGIA™ Contract Form Version 5.0, currency specified as United States Dollars. 

IGF Act Company technologies have been subject to patents in the United States, Bermuda, New Zealand, Australia, United Kingdom and European Union. No license is granted hereby for public distribution.

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