Prosperity Life Insurance Group, LLC, and SBLI USA Mutual Life Insurance Company, Inc., have reached a definitive agreement whereby Prosperity has agreed to acquire SBLI USA through a sponsored demutualization. Prosperity expects to have over $3 billion of combined assets within its insurance company subsidiaries following the transaction.
“SBLI USA has a long history dating back to its founding in 1938,” said Jay Novik, Chairman of Prosperity Life Insurance Group. “This transaction represents an opportunity for Prosperity to enter the New York marketplace, where we are excited to continue to maintain the strong SBLI USA brand. We look forward to continuing to work closely with SBLI USA's management team and the New York Department of Financial Services to complete this transaction.”
SBLI USA, which, along with its predecessor, has been serving its policyholders for nearly 75 years, will continue to be based in New York City as a subsidiary of privately held Prosperity, which is controlled by Reservoir Capital Group and Black Diamond Capital Partners.
“This is a great step in the evolution of our organization,” commented Mike Akker, CEO and Director of SBLI USA. “By converting from a mutual to stock company, we will have much better access to capital to take advantage of profitable opportunities that we see in the marketplace. This is an exciting next chapter for our organization, our associates and our policyholders. We would not be here if it weren't for the dedication, loyalty and commitment of our associates, which was certainly a factor in Prosperity's decision to acquire SBLI USA.”
“We are proud that SBLI USA and its Arizona-domiciled subsidiary S.USA are becoming part of Prosperity. With its strong focus in the Northeast, SBLI USA complements Prosperity's existing presence in the Mid-Atlantic region through our subsidiary, Shenandoah Life,” said Matt Popoli, Senior Managing Director of Reservoir Capital Group. “This transaction is another good example of Prosperity's ability to provide mutual life insurance companies with improved financial strength and access to capital, while still allowing the continuation of an independent identity and brand. We are excited about the growth opportunities that we are seeing in the marketplace for Prosperity.”
Upon the closing of the transaction, and following board, regulatory and policyholder approval for the demutualization, Prosperity will own 100 percent of SBLI USA. SBLI USA will continue to occupy its Manhattan corporate headquarters and maintain its commitment to community outreach.
Prosperity and the Board of Directors of SBLI USA have approved the definitive agreement. The transaction, which is subject to customary closing conditions, is expected to close in the third quarter of 2013.
Victoria Spears
Victoria Prussen Spears is senior vice president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. A graduate of Sarah Lawrence College and Brooklyn Law School, Ms. Spears was an attorney at a leading New York City law firm before joining Meyerowitz Communications. She may be contacted at [email protected].