Growth-oriented insurance platform Kuvare Holdings completed its purchase of Guaranty Income Life Insurance Company (“GILICO”), and established a new reinsurer, Kuvare Life Re (“KLR”), and executed a closed-block reinsurance transaction with a highly rated insurance company.
With the completion of these two transactions, Kuvare’s consolidated assets exceed $1bn.
GILICO, a Legal Reserve Life Insurance Company based in Baton Rouge, LA, is licensed in 31 states and focuses on protecting middle-market customers through the sale of annuities, life insurance and supplemental insurance products.
Kuvare’s acquisition received final approval from the Louisiana Department of Insurance last week. GILICO’s headquarters, management team and staff will remain in Baton Rouge.
KLR’s initial reinsurance transaction includes a portfolio of fixed annuity products from a highly rated insurance company. In establishing KLR, a Bermuda Monetary Authority, registered Class E Insurer, Kuvare is well positioned to provide flexible capital solutions to the life insurance and annuity market.
Kuvare CEO Dhiren Jhaveri said: “It has been a pleasure to work with GILICO’s management team over the last year and we look forward to continuing to work with them as we expand the business and seek new opportunities in the years to come.
“With GILICO and KLR, Kuvare’s platform is now well equipped to serve middle-market customers. These strategic acquisitions are the foundation for our operating model going forward – unlocking growth by expanding product breadth and distribution, as well as implementing tactical asset management strategies and partnering with insurance carriers to provide additional services and solutions.
“We look forward to expanding Kuvare’s capabilities, as we continue to grow new products and services for middle-market customers.”
For the GILICO transaction, Sandler O’Neill + Partners was the financial advisor to Kuvare, with Sidley Austin and Jones Walker acting as legal counsel.
For the formation of KLR and execution of the initial reinsurance transaction, Appleby (Bermuda) Limited and Sidley Austin served as legal counsel.