Prosperity Life Insurance Group, LLC has announced the sale of the majority of its shares to an investment partnership consisting of Elliott Management Corporation, operating principals of investment firm Wand Partners, Inc., and Anurag Chandra, the current Chief Executive Officer (CEO) of Prosperity.
The U.S. life re/insurer will maintain its current management, strategy, distribution and employee base, and hopes to gain access to additional capital and resources through the deal.
Prosperity’s current majority shareholders, including funds managed by Reservoir Capital Group, LLC and Black Diamond Capital Partners, definitively agreed to the sale of their total ownership interests to the new investment group.
Chandra commented: “This transaction is a testament to the exceptional strategic and financial transformation that the Company has achieved under the leadership of Prosperity’s Board of Directors and management team.
“As the Company seeks to build on its strong momentum and further accelerate the implementation of its organic and inorganic growth strategy, this ownership transition to another experienced investor group with a long-term investment horizon and significant financial resources will serve as a key source of competitive advantage.”
Matt Popoli, Chairman of Prosperity and Senior Managing Director of Reservoir, said: “As the founding investor and the sponsor of Prosperity, it has been exciting to see the Company achieve numerous significant milestones since its inception in 2009, when Reservoir and Black Diamond partnered to form the business and build it through the sponsored demutualizations of Shenandoah in 2012 and SBLI USA in 2014. I believe that Elliott and Wand will be great partners to continue the Company’s positive momentum.”
Partner and Co-Chief Executive of Elliott, Jonathan Pollock, who led the initiative, also said: “We are very pleased to have reached agreement to acquire Prosperity and look forward to backing this entrepreneurial and successful management team.
“Elliott and Wand have partnered on insurance investments since 2009 and have a successful track record of supporting incumbent management teams with access to significant capital resources to strengthen the financial profile of the businesses and accelerate their growth. We look forward to building on Prosperity’s sound platform for stability and growth.”
Prosperity provides protection, supplemental and asset accumulation products through its member companies, Shenandoah Life Insurance Company, SBLI USA Life Insurance Company, Inc. and S.USA Life Insurance Company, Inc., and has an A.M. Best financial strength rating of A-.
The transaction is subject to regulatory approval, but Prosperity expects the sale to be completed sometime in the third-quarter of 2018.
The deal reflects events from January 2017, when Elliott also completed the acquisition of a controlling interest in Aeolus Capital Management, Ltd, an insurance-linked investment manager.
