National Guardian Life Insurance Company (“NGL”) today announced an agreement to sell certain closed-block businesses to Prosperity Life Assurance Limited (“Prosperity Life”). The subject businesses have combined net statutory reserves of approximately $400 million and consist of life, annuity and A&H lines.
“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,” said Knut A. Olson, NGL’s President & CEO. “Proceeds from the sale will be utilized consistent with NGL’s strategic capital optimization program, including investing in our core preneed business and enhancing the services and products provided to our nationwide base of policyholders.”
“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.”
The transaction is expected to close in mid-2020, subject to regulatory approval and the satisfaction of other closing conditions. Financial terms of the transaction were not disclosed.
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.
About National Guardian Life Insurance Company
Established in 1909 National Guardian Life Insurance Company is an insurance company headquartered in Madison, Wis. Licensed to do business in 49 states and the District of Columbia, NGL markets preneed and individual life and annuities, as well as group markets products. NGL is rated A- (Excellent) (Positive Outlook) by AM Best. Information about NGL can be found at www.nglic.com; Facebook: Facebook.com/NGLIC and LinkedIn: https://www.linkedin.com/company/national-guardian-life-insurance-company.
About Prosperity Life Assurance Company
Prosperity Life Assurance Limited is a newly formed Bermuda based long-term reinsurer that offers comprehensive capital and risk management solutions to its reinsurance clients. It is affiliated with the Prosperity Life group of companies, which is an A- AM Best rated U.S. life insurance platform, principally owned by funds affiliated with Elliott Management Corporation. As of December 31, 2019, Elliot managed approximately $40.2 billion in assets. Prosperity provides a broad variety of capital and risk management solutions to its reinsurance clients, in addition to providing financial security through protection, asset accumulation and supplemental products in its consumer segment.
NGL rating current as of 02/28/20. National Guardian Life Insurance Company is not affiliated with The Guardian Life Insurance Company of America a/k/a The Guardian or Guardian Life.