Elliott Management-led investor group buys Prosperity Life Insurance
January 8, 2019 by Compelo Staff Writer
An investor group led by Elliott Management has completed the acquisition of US insurance company Prosperity Life Insurance Group for an undisclosed price.
Prosperity Life Insurance offers protection, supplemental and asset accumulation products to individuals and their families.
The products are distributed via banks, independent marketing organizations, and worksite and affinity channels.
Its protection products include Final Expense, Graded Death Benefit Term, Income Continuation Term, Renewable & Convertible Term, Simple Issue Term, Whole Life and Single Premium Universal Life.
Under asset accumulation, Prosperity Life Insurance offers two products in the form of Fixed Index Annuity and Single Premium Deferred Annuity.
On the other hand, the insurance group’s supplemental products include Medicare Supplement, Work-site Accident, Work-site Cancer, Work-site Critical Illness and Combo Life.
Prosperity Life Insurance operates mainly through its member companies – Virginia-based Shenandoah Life Insurance, New York-based SBLI USA Life Insurance and S.USA Life Insurance, which is domiciled in Arizona.
All of the group’s insurance operating subsidiaries are said to have an A- (Excellent) financial strength rating by New Jersey-based credit rating agency A.M. Best.
The deal to buy the insurance group was made in March 2018 with the buyer group comprising affiliated entities of Elliott Management and operating principals of insurance-focused private investment firm Wand Partners. Prior to the deal, the majority shareholders in Prosperity Life Insurance were funds managed by Reservoir Capital Group and Black Diamond Capital Partners.
The sale of the insurance organization was taken up to sustain its current management, strategy, distribution and employee base. It was also undertaken to gain access to significant additional capital and resources to fast track its organic and inorganic growth.
Barclays played the role of exclusive financial advisor to the insurance group in the transaction while Debevoise & Plimpton was the legal advisor. For Elliott Management and Wand Partners, Greenberg Traurig and Akin Gump Strauss Hauer & Feld were legal advisors while Ernst & Young was the accounting and tax advisors in the transaction.
Prosperity Life Insurance was founded in 2009 by Reservoir Capital Group and Black Diamond Capital Partners. It was consolidated via the sponsored demutualizations of Shenandoah and SBLI USA in 2012 and 2014, respectively.
