Prosperity Life Insurance Group to Acquire SBLI USA

Prosperity Life Insurance Group, LLC and SBLI USA Mutual Life Insurance Company, Inc. today announced that they have reached a definitive agreement whereby Prosperity has agreed to acquire SBLI USA through a sponsored demutualization.

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Prosperity expects to have over $3 billion of combined assets within its insurance company subsidiaries following the transaction

New York, NY (PRWEB) January 30, 2013

Prosperity Life Insurance Group, LLC (“Prosperity”) and SBLI USA Mutual Life Insurance Company, Inc. (“SBLI USA”) today announced that they 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. Prosperity is led by an experienced group of insurance and investment professionals.

“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.”

In 2012, Shenandoah Life Insurance Company, a nearly 100-year-old mutual life insurance company based in Roanoke, Va., was acquired by Prosperity through a sponsored demutualization transaction.

Upon the closing of the transaction, and following board, regulatory and policyholder approval for the demutualization, Prosperity will own 100% 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.

About Prosperity Life Insurance Group, LLC

Prosperity is a life insurance holding company led by an experienced group of insurance and investment professionals. Prosperity’s principal operating subsidiary is Shenandoah Life Insurance Company, a Virginia-domiciled insurance company. Prosperity was formed in 2010 by investment funds managed by Reservoir Capital Group and Black Diamond Capital Partners.

About SBLI USA Mutual Insurance Company, Inc.

SBLI USA traces its roots to 1938 when the Savings Banks Life Insurance Fund, which would ultimately become SBLI USA Mutual Life Insurance Company, Inc., was created in New York. Today, SBLI USA has $12.5 billion of insurance in-force, approximately $1.5 billion in assets, and over 250,000 policies.

About Reservoir Capital Group, L.L.C.

Reservoir Capital Group, L.L.C. is a privately held investment firm with an opportunistic “hybrid” investment approach. Reservoir invests directly in public securities and private investments, as well as in partnership with investment teams through the creation of hedge funds and private equity funds in which the Reservoir funds are an owner. Reservoir currently has approximately $6 billion of capital under management.

About Black Diamond Capital Partners I, L.P.

Black Diamond Capital Partners I, L.P. is a private equity fund focused on investments in the insurance industry. The principals have worked closely with Reservoir on insurance transactions for over a decade.


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