Athene agrees to acquire Presidential Life for $415 million
By National Underwriter
By Maria Wood
In a $415 million all-cash deal, Presidential Life Corp. today agreed to be acquired by a subsidiary of Athene Holding Ltd., a Bermuda-based holding company. The purchase price is based on a per-share price of $14, which represents a premium of approximately 38% over the $10.14 common stock price of Presidential Life the day before the acquisition was announced and 40% over the average closing price for the five trading days prior to July 12. The deal is expected to close later this year.
Presidential Life, which sells fixed annuities, life, accident and health insurance products, is a Delaware corporation with headquarters in Nyack, N.Y. The deal awaits approval from majority shareholders and the New York State Department of Financial Services.
Among Athene’s principal companies are: Athene Annuity & Life Assurance Co., a Delaware-domiciled stock life insurance company focused on retail fixed annuity sales and reinsurance; Athene Life Re Ltd., a Bermuda-based reinsurer focused on the retirement services market, and Athene Life Insurance Co., an Indiana-domiciled stock life insurance company focused on the institutional funding agreement market.
“We continue to build a market-leading retirement savings company through organic growth, reinsurance and strategic acquisitions,” said James R. Belardi, CEO of Athene, in a statement. “The purchase of Presidential Life will create significant opportunities for growth in our retail sales and reinsurance operations.” Athene Annuity does not currently operate in New York.
“We believe this transaction is in the best interest of our shareholders,” said John McMahon, chairman of the board of Presidential Life, in the same statement. “Today’s announcement is the result of a comprehensive process in which the board of directors, with the assistance of its outside advisors, carefully considered strategic alternatives for our shareholders.”
The deal comes soon after Presidential Life completed its purchase of Great American Life Assurance Company (GALAC) for $7.04 million. GALAC had maintained licenses to write life and annuity business in 38 states plus the District of Columbia.
Originally published on LifeHealthPro.com