Durham, N.C.-based Global Bankers Insurance Group, LLC recently announced that one of its affiliates has entered into a definitive agreement to acquire Lincoln, Neb.-based Lincoln Benefit Life Company and certain other affiliated entities from Resolution Life, L.P.
The acquisition, expected to close in 1Q 2018 pending regulatory approval and satisfaction of other customary closing conditions, looks to open the door for Lincoln Benefit Life to once again sell life and annuity products for the first time since 2013, according to a release detailing the announcement.
Before being placed into run-off in 2013, Lincoln Benefit Life provided fixed and variable annuities, universal life insurance and other life and annuity products. The company is licensed in 49 states and services approximately 200,000 policyholders.
Financial terms of the deal were not disclosed. In 2013, Resolution Life paid $600 million to buy Lincoln Benefit Life from Allstate Corp., which had owned the company since 1984. Resolution Life bought the company for its assets, and while it continued to collect premiums and service existing policies, it did not issue any new ones.
The acquired entities support a seasoned and diversified book of in-force life and annuity business with over $9.5 billion in policy reserves and $572.4 million in capital and surplus on a statutory basis as of June 30, 2017.
Lou Hensley, Co-CEO and President of Global Bankers, said the acquisition contributes a sizable and efficient platform to enhance Global Bankers’ growing insurance company portfolio. “Lincoln Benefit Life is our largest acquisition since our inception and we are excited for the future opportunities this transaction brings. Resolution Life’s management team, along with the Company’s employees, have built an impressive business with scalable operations. Although the Company has recently been in runoff, Lincoln Benefit Life is a strong brand name that we can leverage for new sales.”
The decision to sell Lincoln Benefit Life follows the Resolution Group’s planned consolidation of its insurance activities across the United States, the United Kingdom and continental Europe into a single holding company with a unified shareholding structure.
“We believe this is a good transaction for Lincoln Benefit Life’s policy owners and employees. Global Bankers plans to continue Lincoln Benefit Life’s operations in Lincoln, Nebraska and Rosemont, Illinois, thereby providing continuity and consistency to all stakeholders. The transaction also provides good value for our investors in Resolution Life,” said W. Weldon Wilson, CEO of Resolution Life.
“We have the financial strength and stability to grow and expand Lincoln Benefit Life’s existing footprint,” said Paul Brown, EVP, Finance and Strategy for Global Bankers. “This transaction is another example of our long-term, buy and hold commitment to the life insurance industry in the United States and around the world.”
Global Bankers Insurance Group, LLC is an international family of insurance and reinsurance companies, focused on Life Insurance and Annuities. Some of Global Bankers portfolio of insurance companies in the U.S. includes Colorado Bankers Life Insurance Company, Bankers Life Insurance Company and Southland National Insurance Corporation. Global Bankers’ global reach includes operations in the United Kingdom, the Netherlands, Bermuda and India. Global Bankers is a wholly-owned division of Eli Global, LLC. For further information, see www.globalbankers.com.
Lincoln Benefit Life Company, Inc. has been a strong leader in providing life insurance and annuity solutions since 1938. Lincoln Benefit Life, based in Lincoln, Nebraska, services approximately 200,000 policyholders and is licensed in 49 states. It is rated A- (Excellent) by A.M. Best and BBB+ (Good) by Standard & Poor’s.