An investment bank wants to lend more to wealthy life insurance and annuity customers.[@@]

The investment bank, Credit Suisse First Boston, New York, has acquired a U.S. premium finance business from a U.S. unit of ING Groep N.V., Amsterdam.

The price is not available, says CSFB spokeswoman Victoria Harmon.

But CSFB is talking about plans to expand the premium finance unit’s menu of services.

CSFB is folding the former ING unit into its own Credit Suisse First Boston Premium Finance Companies unit. The unit will accept cash, the cash value of life insurance policies, marketable securities and letters of credit as collateral for loans.

In addition to financing life insurance, CSFB Premium Finance will consider financing purchases of deferred annuity contracts.

Wealthy individuals establish trusts that buy insurance on behalf of the clients. CSFB Premium Finance will lend money to the trusts to buy the contracts and will hold the cash value and other assets as collateral, Harmon says.

A typical premium finance loan might be a variable-rate loan with a drawdown period of 5 to 10 years and a payback period of 5, 10 or 15 years.

CSFB is an arm of Credit Suisse Group, Zurich.