Less than a month after unveiling its buyout of Aviva USA, a private equity company has expanded its insurance and annuity portfolio by completing the acquisition of a northeastern-based insurer.
Through its wholly owned subsidiary of Athene Holding, Athene Annuity & Life Assurance Company, private equity firm Athene Holding Ltd. disclosed today that it has completed its buyout of Presidential Life Corporation, Nyack, NY. The merger was announced last July.
Athene Annuity & Life Assurance Company is a Delaware-domiciled insurer focused on retail fixed and index annuity sales and reinsurance. Presidential Life markets and sells a fixed annuity, life insurance and accident and health insurance products through its wholly owned subsidiary, Presidential Life Insurance Company. The New York-domiciled life insurer had approximately $3.5 billion of admitted assets as of September 30, 2012.
The transaction is valued at approximately $414 million, according to a press statement from Athene Holding.
“The acquisition of Presidential Life gives Athene a presence in all 50 states and creates significant opportunities for growth in our retail sales and reinsurance operations.”
On December 27, Athene Holding announced its plan to buy Aviva USA from Aviva PLC for $1.8 billion. In a company statement, Athene said Aviva will be renamed Athene USA and will remain headquartered in Des Moines, Iowa.
Under the terms of the latest merger, Presidential Life stockholders will receive $14 in cash for each share of Presidential Life common stock held. Letters of transmittal allowing Presidential Life stockholders of record to deliver their shares to the paying agent in exchange for payment of the merger consideration will be distributed promptly, Presidential Life states.
With the closing of the transaction, Presidential Life’s common shares will cease to trade on NASDAQ and will be delisted.
Sandler O’Neill + Partners, L.P. acted as the financial advisor to Presidential Life and provided a fairness opinion to the Board of Directors of Presidential Life in connection with the transaction. Proskauer Rose LLP acted as counsel to Presidential Life. Sidley Austin LLP acted as counsel to Athene.