National Guardian Life Insurance Company (NGL) has announced an agreement to sell certain closed-block businesses to Prosperity Life Assurance Limited (Prosperity Life).
The businesses in question have combined net statutory reserves of approximately $400 million and consist of life, annuity and A&H lines.
“This reinsurance transaction with NGL launches Prosperity Life Assurance Limited as an emerging provider of customized and innovative reinsurance solutions to the life insurance and annuity industry,” said Nicholas von Moltke, CEO of Prosperity Life.
“We are very proud to work with NGL as this transaction supports its desired capital management objectives.”
Knut A. Olson, NGL’s President & CEO, also commented: “This transaction is a significant milestone for NGL in executing our strategic capital optimization plan and is aligned with our objective of continually improving our return on surplus and risk-based capital position.”
The transaction is expected to close in mid-2020, subject to regulatory approval and the satisfaction of other closing conditions.
Foley & Lardner LLP are serving as legal counsel, and Grace Global Capital LLC as financial advisor, and Oliver Wyman Actuarial Consulting, Inc. as actuarial advisor to NGL.
Debevoise & Plimpton are serving as legal counsel, and Milliman, Inc. as actuarial advisor to Prosperity Life.