Aspida Financial, a subsidiary of Ares Management, has agreed to acquire Pavonia Life Insurance Company of Michigan and its insurance operations from Eli Global for about $75m (£60.22m) in an all-cash deal.
As of 31 March 2019, Pavonia Life Insurance Company of Michigan had nearly $1.1bn (£880m) of assets and around $76m (£61.03m) of statutory capital and surplus. Upon closing of the deal, the Michigan-domiciled insurance company will operate under the Aspida brand.
Based in North Carolina, Pavonia Life Insurance Company of Michigan, has been providing life insurance, annuities and reinsurance products and services. The company, which has more than 170 employees, is currently licensed to operate across 49 states in the US.
The company’s technology platform is claimed to have been designed to make annuities and insurance simple and transparent to provide a seamless experience.
The transaction, which is subject to regulatory approval and other closing conditions, is expected to be completed before the end of the year.
In late 2017, Eli Global’s insurance and reinsurance group of companies – Global Bankers Insurance Group, through one of its affiliates, acquired Pavonia from Enstar Group for $120m (£96.36m).
Pavonia, at that time, was the owner of Pavonia Life Insurance Company of Michigan, Pavonia Life Insurance Company of New York, and Enstar Life (US). The business was originally acquired by Enstar from HSBC Finance in 2013.
The future owner of Pavonia Life Insurance Company of Michigan – Aspida is a newly launched subsidiary of Ares Insurance Solutions, which in turn, is the existing insurance platform of Ares Management.
The launch of Aspida and its purchase of Pavonia Life Insurance Company of Michigan is said to be a natural expansion of Ares’ insurance platform, which includes nearly $15bn (£12.04m) of assets in different strategies in more than 100 insurance clients.
Ares CEO and president Michael Arougheti said: “We are excited to expand our presence in the growing insurance sector and to utilize Ares’ extensive capabilities for our first control acquisition of an insurance company that we can grow organically through new distribution channels and potentially inorganically through reinsurance and acquisitions.
“We have strong conviction that Ares can use its breadth, experience and scale to help Aspida become a market-leading insurance company.”